For the Quarter Ending December 2024
North America
In Q4 2024, Nylon Tire Yarn (NTY) prices in the USA remained stable with slight downward pressure as demand softened in line with seasonal trends and weaker automotive activity.
The tyre manufacturing industry, a key consumer of NTY, saw reduced production due to slower vehicle sales in November and December, which is typical during the holiday season. Rising raw material costs, particularly for Caprolactam, and inflationary pressures further impacted the market, making it difficult for manufacturers to pass on higher costs to consumers.
Supply levels remained stable, supported by consistent domestic production and steady import volumes. Seasonal factors such as lower road travel during winter and reduced vehicle maintenance activity also contributed to softer NTY demand. Despite a brief uptick in tyre production in October, driven by pre-winter vehicle servicing demand, the market cooled toward the end of the year. Overall, stable supply, coupled with seasonal and economic challenges, kept NTY prices under slight pressure, with limited prospects for significant recovery in the near term.
APAC
In Q4 2024, Nylon Tire Yarn (NTY) prices in India declined by 6.7% in November, driven by reduced demand from the automotive sector, particularly tyre manufacturing, amidst rising raw material costs and slower tyre production. While vehicle sales showed moderate growth during the wedding season and seasonal purchases, suppressed rural demand and elevated financing costs weighed heavily on NTY consumption. Imports dominated the supply landscape, with low-cost Russian shipments creating a supply glut and higher-priced Chinese imports intensifying competition for domestic producers already burdened by high Caprolactam costs. Despite stable supply levels supported by inventory build-ups, weak demand from four-wheeler manufacturers, slower rural consumption, and misaligned production-consumption trends led to inventory surpluses. Two-wheeler sales provided slight resilience, but overall demand remained subdued, reflecting broader economic pressures and elevated costs. The market outlook remains bearish, with limited recovery prospects as high financing costs and competition from imports continue to pressure prices and margins for Indian manufacturers. The outlook remains bearish, with stable to declining prices expected in the near term.
Europe
In Q4 2024, Nylon Tire Yarn (NTY) prices in Europe experienced slight downward pressure, reflecting seasonal trends and subdued demand from the tyre and automotive sectors. October saw a modest boost in tyre production due to pre-winter preparations and increased vehicle servicing, but this momentum tapered off in November and December as vehicle sales declined and consumer spending focused on holiday-related expenses. The tyre industry also faced challenges from rising raw material costs, particularly for Caprolactam, and inflation-driven price sensitivity, which constrained purchasing activity. Supply levels remained stable, supported by imports from Asia and domestic production, while logistical improvements in European ports ensured consistent material availability. However, demand was tempered by reduced automotive manufacturing activity, which slowed further in December due to lower export orders and weaker domestic sales. Seasonal factors, including lower winter driving activity, further suppressed NTY consumption. The market ended the year with stable but slightly pressured prices, driven by weak demand and rising costs, with limited recovery expected in the near term.
For the Quarter Ending September 2024
North America
In Q3 2024, the Nylon Tire Yarn (NTY) market in North America showed a mixed trend, driven by several key factors. Supply chain disruptions caused by plant shutdowns induced by hurricanes, coupled with rising import volumes and weakened demand, led to a general downward trajectory. High production across the region created an oversupply situation, pushing inventory levels higher and exerting significant downward pressure on the market. The combination of these factors contributed to a persistently challenging environment throughout the quarter.
In the U.S., the market mirrored this broader regional trend. Supply disruptions and Hurricane Francine, together with seasonal fluctuations, further amplified the difficulties facing the market. Global market dynamics also played a critical role, making conditions more volatile and unpredictable. The reduced downstream production capacities, alongside softened demand, exacerbated the downward pressures seen in the NTY sector, with the U.S. particularly impacted.
Overall, the NTY market in North America continued to experience downward pressure throughout the quarter. Seasonal fluctuations, coupled with global supply chain issues, reinforced the negative trend. Despite occasional fluctuations, the general sentiment remained weak, shaped by supply-side challenges and reduced demand across the region
Asia Pacific
In Q3 2024, the Nylon Tire Yarn (NTY) market across the APAC region experienced a mixed trend in prices, driven by multiple key factors. Supply chain disruptions caused by plant shutdowns, combined with an influx of imports and weakened demand, contributed to the downward trend. Reduced production capacities led to an oversupply, pushing inventory levels higher and further intensifying the price drop. These supply-side issues, along with the softened demand, created sustained downward pressure on pricing throughout the quarter. In India, in particular, notable price reductions were observed, reflecting the broader negative trend across the region. Seasonal fluctuations and the influence of global market conditions also played a crucial role in shaping the market dynamics, resulting in a marked increase in prices compared to the same period last year. The decline for the price assessed in September 2024 were 3.5% higher than previous year. Prices declined by 1.2% from the previous quarter, highlighting the ongoing downward trajectory. The prices bottomed out in August due to higher freight costs for APAC suppliers while gained back again in September.
Europe
In Q3 2024, the Nylon Tire Yarn (NTY) market in Europe experienced a mixed trend, influenced by a combination of key factors. Supply chain disruptions due to plant shutdowns, coupled with an influx of imports and reduced demand, set the stage for a downward market trajectory. High production led to an oversupply, pushing inventory levels higher, which added to the downward pressure on market activity. This oversupply, combined with softened demand, intensified the negative trend across the region throughout the quarter. Germany, in particular, saw a notable reflection of this broader negative market shift. Supply disruptions, coupled with seasonal fluctuations, exacerbated the existing challenges. The influence of global market dynamics further compounded these issues, making the market more volatile. With weakened production capacity and demand, the country faced increasingly difficult conditions, mirroring the overall challenges seen across the European market. Additionally, seasonal factors and global supply chain dynamics contributed to the overall uncertainty. Although market trends fluctuated, the quarter's performance remained on a general downward trajectory, heavily shaped by supply-side issues and the ongoing demand fluctuations. This created a persistently challenging environment for the NTY market across Europe.
For the Quarter Ending June 2024
North America
The second quarter of 2024 for the North American Nylon Tire Yarn (NTY) market has been characterized by a mixed trend driven by a combination of factors. Prominently, rising crude oil prices have cascaded through the supply chain, inflating production costs. Additionally, labor strikes, particularly in railway sectors, have disrupted supply routes, thereby constrained availability and fostering a tighter market. Increased global freight costs have further exacerbated the situation, deterring imports and compelling local suppliers to adjust prices upwards. Moreover, robust demand from tire manufacturers, buoyed by a recovering automotive sector, has enhanced market dynamics.
Focusing on the USA, the market has experienced significant price volatility. Seasonal factors such as increased travel demand during the summer months have inherently bolstered tire sales, thereby escalating the demand for NTY. Concurrently, market sentiment has been influenced by inventory adjustments and speculative buying in anticipation of further supply disruptions. Caprolactam upstream prices largely remained stable although NTY prices surged by the end of the quarter.
A comparative analysis shows that volatility remained largely concentrated in the second half as the markets were supported by high crude prices and improving demand sentiment. The quarter concluded with NTY. Overall, the second quarter of 2024 has seen prices progressively stabilizing after initial fluctuations, setting a firm foundation for subsequent market movements
Asia Pacific
In Q2 2024, the Nylon Tire Yarn (NTY) market in the APAC region experienced a notably bullish trend, driven primarily by rising feedstock costs, supply chain disruptions, and increased demand. The cost hike in caprolactam, a key feedstock influenced by elevated crude and benzene prices, significantly impacted NTY prices. Additionally, geopolitical tensions in the Red Sea and Persian Gulf regions exacerbated freight costs, further inflating prices. Supply constraints were observed as several major producers undertook maintenance shutdowns, including Century Enka and some Chinese and Russian suppliers, which restricted NTY availability. Focusing on India, the country saw the most pronounced price changes within the APAC region. Indian NTY markets displayed a robust increasing sentiment throughout Q2, driven by a resurgence in domestic demand and heightened export activity. The onset of the monsoon season contributed to this volatility, with rural demand for agricultural machinery peaking and then stabilizing. The first half of the quarter witnessed a sharper price increase compared to the latter half, reflecting a 5% difference, as initial supply shortages were gradually mitigated by the end of the quarter. The prices gained cumulatively 4.5%. The quarter culminated in a price of USD 231,100/MT for NTY 840D Ex-Ahmedabad, underscoring the persistent bullish trend. This quarter was marked by significant cost pressures and supply chain disruptions, ultimately leading to a consistent upward price movement for Nylon Tire Yarn in the APAC region.
Europe
In Q2 2024, the European NTY market experienced significant price increases, driven by multiple influential factors. The primary driver was heightened demand, especially from the tire manufacturing sector, which saw a seasonal uptick as automotive production geared up for summer. Additionally, geopolitical tensions and subsequent trade disruptions, particularly affecting supply routes and logistics from Russia, further tightened market availability. Crude oil price inflation also exacerbated cost pressures, leading to higher production and transportation costs for NTY. Focusing on Germany, this quarter witnessed the most pronounced price changes within the region, reflecting an overall bullish sentiment. The replacement tire market's recovery, coupled with a robust industrial production rate and positive economic indicators, has sustained high demand levels. This strong demand was complemented by supply constraints due to geopolitical instability, which created a perfect storm for escalating prices. The price trend within the quarter showed increased due to rising automobile demand. Overall, the pricing environment for NTY in Q2 2024 has been overwhelmingly positive, characterized by strong market demand and constrained supply, leading to sustained upward pressure on prices.
For the Quarter Ending March 2024
North America
Nylon Tire Yarn (NTY) showed a bearish trend in the first quarter of 2024 on the back of subdued demand as the inventory pressures remained low for the stocking throughout the quarter. Supply largely remained dependent on Canada which had severe downturns due to strikes and cold winter. Nylon Tire Yarn producers revealed improved processing margins shrank further due to weakness in caprolactam prices with US markets being severely stocked with caprolactam.
Tire markets in US currently are oversupplied with unsold car inventories in the primary market continues to increase as interest rates on car remained high, though substantial discounts continue to provide sufficient demand to keep production up. Inquiry with a major NTY producer revealed that prices are expected to remain subdued in domestic market of USA for some time as oversupply from Canadian suppliers continue to revise their contract prices downwards due to weakness. Secondary car market and replacement tire market are also subdued as insurance costs and refinancing costs have remained high, which is further leading to declining demand.
Overall, prices have fallen by 18% Q-o-Q basis in 2024, with caprolactam prices being revised further down by 9%. In the given climate, when WTI and Canadian prices have escalated significantly, the downturn in NTY supply to persist for another quarter.
Asia Pacific
Nylon Tyre Yarn (NTY) showed a mixed trend in the first quarter of 2024. In January, the prices remained bullish trend in Asian markets especially in the Indian markets primary on the back of rising demand from the end use automobile industries. Inquiries with the market participants revealed that demand side remained strong due to inventory pressures.
In Asian markets, demand factor remained positive despite weakening global economy and slower Chinese recovery. Nylon Tyre Yarn producers revealed improved processing margins declined due to rising spot prices of raw materials. In February and March, prices turned bearish due to subduction in demand amidst high inventory stocks and falling demand from replacement tire markets. Feedstock and energy prices also began their bullish trend due to rising energy and crude oil prices.
Consumer sentiment in Asia Pacific continued to remain bullish although slowing down. Inquires with major NTY supplier revealed that prices are expected to remain stable in domestic market of India for some time before beginning its bearish trends as tire markets are currently undersupplied with rural demand picking up later in APAC.
Europe
Nylon Tire Yarn (NTY) remained bullish in the first quarter of 2024. In January, the prices remained bullish trend in European markets especially driven by inventory pressures. Nylon Tire Yarn producers undertook price revisions upwards at contract deliveries with prices moving on aggregate level by 15% across the supplier range. This upward movement in contract prices was offset by downward spot movements as downturns intensified. German deliveries from Italy saw reduced quantum for the first two months.
In March, prices were further moving upwards due to strong demand sentiments and easing of downturns in Italian and Dutch manufacturing as newer contract prices for energy and other petrochemical feedstocks deflated significantly in the spot and contract markets. Demand for NTY intensified as replacement tire market began recovery after a warm winter. Market inquiries revealed that spot-contract differential narrowed down to 5-7% across suppliers group with many participants anticipating stronger demand than previously anticipated, though macroeconomic data continues to show high persistence of core-inflation and slower demand pickup.
Overall, European NTY prices have remained bullish owing to recovery in tire markets as gas prices in Europe have been deflated significantly for consumers and recoveries across replacement tire market is seen. Plus, market participants revealed that preference for gas based vehicles increased despite government’s incentives to adopt EV, EV market continued their slowdown in the given quarter.
