Global Polyamide Market Displays Mixed Trends Amid Weak Demand from Key Industries

Polyamide prices across key global markets showed a mixed trend in the first half of November 2024, with a general shift toward stability following earlier declines. Key regions including Germany, the United States, and China have seen relatively balanced supply-demand dynamics, supported by seasonal demand improvements and sufficient inventory levels, which have mitigated volatility.

In Germany, Polyamide prices exhibited a decline trend. The automotive sector, a primary demand driver for Polyamide, continues to face challenges, with weaker-than-expected demand and ongoing economic uncertainties. Although car sales saw a slight uptick last month, consumer confidence continues to be restrained. While stable feedstock costs have provided some support for price stability, the German manufacturing sector remains under pressure. Firms have been forced to pass on savings from lower input costs, which has limited margin recovery for Polyamide manufacturers. The downturn in electric vehicle sales has also contributed to downward pricing pressure in the sector, adding complexity to the market's recovery.

In the United States, Polyamide prices held steady during the same period, reflecting balanced supply and demand dynamics. Stable feedstock prices have supported this trend, although logistical disruptions, including delays related to hurricanes, have impacted supply conditions. Manufacturers have been managing backlogs, but delays in shipping finished goods have led to an accumulation of inventories. The build-up of vehicle inventories has pressured manufacturers to adjust prices downward in order to maintain competitiveness. As the market enters the winter season, subdued demand and ongoing inventory management will likely influence the short-term outlook for Polyamide prices in the U.S.

Whereas in Asia, particularly in China, Polyamide prices showed a slight decline, though the market remains relatively stable due to a balance between supply and demand. The automotive industry has shown signs of recovery, particularly in the new energy vehicle segment, which continues to support domestic demand for Polyamide. Adequate inventory levels and declining feedstock prices have kept upward pressure on costs at bay. Auto manufacturers have been increasing production and expanding their inventory holdings in anticipation of higher demand, driven by the upcoming festive season.

As the year draws to a close, Polyamide markets in the U.S. and Europe are anticipated to maintain stability, driven by moderate demand improvements and efficiently managed inventory levels. In contrast, the Asian market shows potential for growth, supported by festive demand and a recovering automotive sector, though gains may be tempered by weak export activity. While challenges such as trade uncertainties and subdued export demand could influence future trends, the short-term outlook for the global Polyamide market remains cautiously optimistic.