Polyamide markets in the second half of December 2024 experienced relative stability, influenced by weakening demand across key sectors, declining feedstock costs, broader economic headwinds, and seasonal slowdowns. Adequate inventory levels across regions contributed to this price stability, masking underlying regional variations and specific market drivers in both Europe and the United States.

In Europe, Polyamide prices stabilized amidst subdued demand from the automotive sector, a crucial downstream consumer. This sector operated with sufficient inventory, entering a period of year-end destocking and seasonal slowdown, significantly impacting Polyamide demand. The German automotive industry, a major Polyamide consumer, faced considerable challenges in 2024, including declining sales, workforce reductions, and intensifying competition, particularly in the rapidly evolving electric vehicle (EV) market. High operating costs, coupled with a weakening Chinese market, further impacted major German manufacturers like Volkswagen, Mercedes, and BMW. Stringent EU emissions regulations, with the threat of significant fines for non-compliance with CO2 targets, added further pressure. These regulations created a challenging competitive landscape, especially compared to Asian automakers, such as Chinese manufacturers who demonstrated substantial domestic market growth. While new EV models and potential future price reductions offered some long-term optimism for increased Polyamide demand in automotive applications, the immediate impact during the second half of December was limited, with focus remaining on inventory management and navigating the prevailing market slowdown.

Similarly in the United States also, Polyamide prices experienced stability, driven by weakening demand across key sectors, declining benzene feedstock prices, and broader economic influences. Similar to Europe, the U.S. automotive sector reported reduced order volumes, reflecting a broader slowdown in industrial activity compounded by the year-end holiday season. The decline in benzene prices, a crucial feedstock for Polyamide production, exerted downward pressure on production costs. Furthermore, the strengthening U.S. dollar negatively impacted export competitiveness, particularly in Asian markets, making U.S. exports less attractive and contributing to domestic oversupply. The U.S. Chemical Production Regional Index (CPRI) reported a contraction in industrial output during December, further underscoring the broader economic slowdown. Cautious procurement practices by buyers, focused on managing existing stocks rather than placing new orders, further restrained Polyamide market activity.

Looking ahead to early 2025, the Polyamide market faces continued headwinds, including economic uncertainties, stricter environmental regulations in Europe, and evolving trade dynamics. In Europe, stringent CO2 compliance measures could reshape market priorities, especially for automakers reliant on traditional gasoline-powered vehicles. Meanwhile, in the U.S., the stabilization of feedstock costs and gradual recovery in automotive production may provide mild support for Polyamide demand. However, uncertainties in global logistics and fluctuating energy markets remain significant risks. Market participants anticipate that increased EV adoption and easing feedstock costs could contribute to moderate growth, but the pace of recovery will largely depend on macroeconomic conditions and evolving consumer preferences.