The global Polyamide market has demonstrated price stability for the week ending February 7, 2025, supported by contrasting regional demand-supply dynamics. While the U.S. market maintained equilibrium through steady downstream consumption and pre-emptive procurement, Germany faced subdued automotive demand alongside resilient production levels. Both regions benefited from predictable feedstock costs, though logistical disruptions and energy price volatility introduced localized challenges.

Polyamide prices in the U.S. held firm as consistent automotive sector procurement despite a month-on-month decline in vehicle sales. Buyers accelerated purchases from the international market to hedge against potential tariff-related cost increases, following the temporary suspension of proposed levies on imports from Canada and Mexico until March. This pre-emptive activity stabilized demand despite a marginal dip in January’s export orders, attributed to sluggish international demand.

On the supply front, domestic Polyamide production remained steady, supported by stable feedstock Adipic Acid prices. However, extreme weather events exacerbated existing labor shortages, prolonging delivery timelines. Despite these logistical constraints, robust inventory management ensured uninterrupted material availability, sustaining supply adequacy and price equilibrium.

Whereas in Germany, the Polyamide market experienced subdued demand, particularly from the automotive sector, a key consumer of Polyamide materials. Following significant destocking at the end of the previous year, most buyers held sufficient Polyamide inventory, limiting the need for additional purchases. On the demand side, the German Federal Motor Vehicle Office (KBA) reported a decrease in new passenger car registrations in January 2024 compared to the previous year. This decline reflects ongoing economic challenges, leading consumers to defer major investments and dampening Polyamide consumption in the automotive market.

On the supply side, conditions remained stable, with manufacturers sustaining output amid flat Benzene and Adipic Acid contract prices. However, rising natural gas costs put some pressure on producers, elevating expenses for electricity and gas-derived raw materials. BASF’s force majeure declaration on PA66 production at Ludwigshafen introduced supply risks for specialized grades in the coming weeks, though improved delivery times indicated broader supply chain functionality.

Despite near-term demand softness, business confidence reached a three-year high, fuelled by expectations of interest rate cuts and post-election economic recovery, hinting at potential demand revitalization for Polyamide later in 2025.

As per ChemAnalyst, the Polyamide markets in both the U.S. and Germany are anticipated to maintain their stability. In the U.S., trade policy ambiguity under the Trump administration and potential tariff reinstatements after March could disrupt procurement patterns, while logistical strains may resurface with seasonal weather disruptions, and in Germany, economic recovery and consumer confidence post-elections are expected to play crucial roles. Market participants will closely monitor these factors, along with global trade policies and raw material cost fluctuations, to navigate the evolving landscape of the Polyamide industry.