The Polyamide market has been witnessing a significant hike due to the growing demand from the international market and soaring feedstock prices in the wake of increasing volatility in energy feedstock prices. Natural gas prices have been gaining consistently amid increasing volume intakes of LNG from Europe. Meanwhile, crude oil prices have eased in the last couple of weeks.

As of 12th April 2022, Henry Hub's natural gas prices were assessed at USD 6.6/MMBTU, and WTI crude oil prices were assessed at below USD 100/b. Europe has been facing severe energy feedstock shortage as the geopolitical differences between Europe and Russia grow larger, culminating in import cuts of Russian LNG and crude oil. European markets have now turned to the US to fulfil the void left by curtailed availability of Russian LNG. Increased demand for LNG from Europe has catapulted the US Natural gas prices further upwards amid growing domestic consumption.

Among feedstocks, as per the latest assessment by ChemAnalyst, Caprolactam and Adipic acid prices in the USA have been firm, consolidating on the strong cost pressure from upstream aromatics and steady demand from domestic as well as international markets. As of 1st week of April, Caprolactam prices were assessed at USD 2270 per MT FOB Texas, USA. Consumption from downstream Polyamides has been robust, culminating in healthy inflationary pressure. Demand from the European market has also grown in the last few weeks as polymer prices have been off the charts. High polymer prices in the European markets have presented an arbitrary wide window for US traders to reach European shores. Hence, market participants have been gaining from the strong pricing sentiment.

Increasing demand from downstream automotive and electricals & electronics industry have been healthy in the domestic market while demand from international market has been accelerating. The US extensively caters to the Polyamide demand from Asia, particularly South Asia and Far East Asia, along with Europe and neighbour Canada. European conflict has given ample space for US Polyamide to reach European markets as the pricing sentiment in the region remains favourable. 

As of the week ending 8th April 2022, Polyamide 6 prices were assessed at USD 3815 per MT on FOB basis while Polyamide 66 prices were assessed at USD 4740 per MT on DEL basis.

As per ChemAnalyst, "Polyamide prices in the US region are expected to remain healthy in the coming weeks as firm feedstock prices coupled with increased demand from the domestic and international market."