Polyamide prices across Europe, including Germany, the UK, and Italy, have shown no significant changes at the early week of November 2024, maintaining stability in line with trends from the previous week. The market situation continues as it was last week, with weak demand from the automotive sector and steady supply conditions. As a result, prices for Polyamide have held firm, despite the ongoing economic pressures affecting key industries.

On the supply side, Polyamide production in Germany remains stable, with adequate stock to meet demand. However, logistical delays at Hamburg port, with days of berthing congestion, are restricting the immediate availability of material. These supply chain bottlenecks help offset the impact of low demand, providing support to prices, and preventing a further decline despite the broader market weakness. As a result, the combination of steady supply and logistical disruptions is helping maintain price stability.

The automotive sector, which is a major consumer of Polyamide, remains a key concern for pricing. Reports indicate that Germany’s automotive industry is continuing to slow down, driven by factors such as the transition to electric vehicles (EVs), regulatory pressures, and falling car sales. Major German carmakers, including BMW, are facing declining profits, and job cuts have been announced at suppliers like Schaeffler, further illustrating the strain on the sector. These cuts, in turn, have a direct impact on Polyamide demand, as automotive production slows and the need for materials used in vehicle components declines. Furthermore, as Germany is a key supplier of Polyamide to Italy, the decline in demand within the Italian automotive sector is further contributing to the softness in the Polyamide market.

On the feedstock side, caprolactam prices, one of the key raw materials for Polyamide 6 production, have remained stable this week, continuing the trend from the previous week. With caprolactam prices holding steady, Polyamide producers are experiencing consistent cost conditions.

The automotive sector’s challenges are compounded by a weakening global economy, which has been exacerbated by concerns about rising geopolitical tensions and tariff risks, particularly with the U.S. These economic headwinds have created a more cautious outlook across European manufacturing sector. The spectre of further tariffs, particularly from the U.S., has left many manufacturers wary of potential disruptions to global trade, which could further reduce demand for Polyamide in automotive applications. Additionally, the slowdown in Chinese car sales, a major export market for Germany’s automotive manufacturers, has compounded these difficulties, further reducing the need for materials like Polyamide in vehicle production.

The price of Polyamide in the European market is likely to decline in the coming weeks due to subdued demand from the downstream automotive sector.