For the Quarter Ending September 2024
North America
In Q3 2024, the Polyamide market in North America witnessed a stable pricing trend, indicative of a balanced market situation. Several key factors contributed to this stability. Weak demand from downstream industries, particularly in textiles and automotive, significantly influenced market prices. Reduced procurement activities, cautious buying behaviour, and sluggish trading further suppressed the demand for Polyamide. Additionally, global economic uncertainties, including inflationary pressures and fluctuating raw material prices, created a negative sentiment within the market. The ongoing hurricane season also impacted logistics and trade activities, adding to the challenges faced by the industry.
In the United States, price changes were particularly notable, though overall prices remained relatively stable, with a marginal 0% change from the previous quarter in 2024. However, the latter half of the quarter saw a slight decline of 0.6% compared to the first half, suggesting a gradual decrease in pricing dynamics.
By the end of the quarter, the price for Polyamide 6,6 DEL US Gulf (USA), was recorded at USD 4960 per metric ton. This figure reflects the overall downward trend in pricing dynamics, highlighting the challenges stemming from subdued demand and external economic pressures affecting the Polyamide market.
Europe
In Q3 2024, the European Polyamide market experienced stable prices, with Germany showcasing the significant price changes. The market was influenced by various factors, including weak demand from downstream industries, such as textiles and automotive, and steady supply levels. Additionally, the euro area’s manufacturing sector has slid deeper into contraction as the third quarter came to a close. Eurozone goods producers have also downwardly adjusted their inventories in response to slumping business growth expectations and fewer new orders contributed to the stable pricing environment. Germany, with a 4% increase from the previous quarter, saw the maximum price fluctuations. The overall trend in the region indicated a consistent pricing stability, with an approximately 0% price change between the first and second half of the quarter. The quarter-ending price for Polyamide 6,6 FOB Hamburg in Germany stood at USD 6255/MT. Despite minor fluctuations, the market maintained a stable sentiment throughout the quarter, reflecting a balanced supply-demand scenario and cautious procurement practices among buyers.
APAC
In Q3 2024, the Polyamide pricing in the APAC region has exhibited decline trend, with the market experiencing marginal fluctuations. Key factors influencing prices include weak demand from downstream sectors, oversupply from high operating rates, and reduced cost support due to declining raw material prices, notably pure benzene. However, compared to the previous quarter in 2024, prices recorded a modest decline of 2%, showcasing downward price trends. New export orders fell at a significant rate, while limited trading activity and geopolitical factors further dampened international demand and purchasing activity.
The market witnessed significant price changes, with variations driven by subdued demand in the textile and automotive industries. The second half of the quarter saw a slight decline of 1.8% compared to the first half, indicating a gradual decrease in prices over the period. The quarter-ending price for Polyamide 6 FOB Dalian in China stood at USD 2025/MT, maintaining the overall stable sentiment observed throughout the quarter. Despite challenges, the market remained resilient, with prices showing a balance between supply and demand dynamics.
MEA
In Q3 2024, the Polyamide pricing in the MEA region witnessed a significant decline, with the market experiencing a negative trend throughout the quarter. The decrease in prices can be attributed to several key factors influencing the market dynamics. Firstly, oversupply from global markets, particularly in Asia, led to a surplus of Polyamide in the region, putting downward pressure on prices. Secondly, weakening demand from downstream industries, such as textiles and automotive, further contributed to the price reduction as manufacturers struggled to maintain sales amidst subdued market conditions. Additionally, the stability in freight rates and lacklustre trading activities impacted the pricing environment, discouraging price escalations. Specifically in Saudi Arabia, the market saw the most substantial price changes within the MEA region. The overall trend in the country mirrored that of the broader region, with prices declining steadily. Moreover, the quarter-on-quarter decline of -6% highlighted the continued bearish sentiment in the market. The price difference between the first and second half of the quarter, noted at -3%, demonstrated a consistent downward trajectory in pricing. In conclusion, the quarter-ending price of USD 3567/MT for Polyamide Nylon 6,6 (Med Viscosity) CFR Al Jubail in Saudi Arabia underscored the prevailing negative pricing environment, characterized by persistent decreases and a challenging market landscape.
South America
In Q3 2024, the Polyamide pricing landscape in South America experienced a decline, with Brazil seeing the significant price fluctuations. This downtrend was influenced by weakened demand in downstream industries such as textiles and automotive, resulting in oversupply and reduced consumption of Polyamide. Although production levels remained stable throughout the quarter, there was limited new business activity due to global economic uncertainties affecting consumer spending on durable goods. Additionally, seasonal slowdowns, compounded by geopolitical issues and logistical disruptions, further contributed to the price decrease. As the third quarter came to a close, the market also felt the effects of the hurricane season, which brought severe weather disruptions that impacted logistics and trade activities. The quarter-on-quarter change remained stagnant at a decline of 0.5%, reflecting only a slight decrease. In the latter half of the quarter, prices fell by 1% compared to the first half, indicating a gradual downward trend over the period. By the end of the quarter, the price for Polyamide 6 FOB Sao Paulo was recorded at USD 3675/MT, highlighting the persistent negative pricing trend in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Polyamide market experienced an upward trajectory in pricing, driven primarily by several key factors. The quarter has been marked by a tightening supply chain, driven by increased global demand for ocean freight space, which surged by 9% year-over-year. This escalation in freight rates has significantly impacted the cost structure for Polyamide, resulting in higher market prices. Additionally, the manufacturing sector demonstrated a rebound, particularly within the automotive industry, which saw a notable 7% increase in light vehicle sales. This resurgence in automotive manufacturing has amplified the demand for Polyamide, further pushing prices upward.
Focusing specifically on the USA, the Polyamide market exhibited the highest price fluctuations. The quarter showcased an overall trend of rising prices, influenced heavily by seasonal demand waves and logistical constraints. The price of Polyamide saw a 4% increase compared to the same quarter last year and a 3% rise from the previous quarter in 2024. This consistent escalation underscores the robust demand and constrained supply environment. Notably, there was a 1% price increase between the first and second halves of the quarter, reflecting ongoing market tightness and sustained demand.
In conclusion, the quarter ended with Polyamide 4,6 priced at USD 10650/MT CFR Los Angeles, demonstrating a firm upward trend in the pricing environment. This surge in prices reflects the positive sentiment driven by heightened demand, logistical challenges, and a recovering automotive sector. The market dynamics suggest a continuing positive pricing trend for Polyamide in North America, with the potential for further increases as demand remains strong and supply chains face ongoing pressure. The stability of supply coupled with escalating costs has created a predominantly positive pricing environment throughout Q2 2024.
APAC
During Q2 2024, the Polyamide market in the APAC region experienced a significant bearish trend, influenced by numerous factors. The quarter was marked by pervasive weaknesses in demand across downstream industries, particularly in textiles and automotive sectors. This subdued demand was compounded by sufficient inventory levels, resulting in lower trading activities. The market further grappled with oversupply issues, as consistent production levels outpaced the limited buying interest from domestic and international markets. Additionally, rising freight rates and logistical challenges, including container shortages, exerted upward pressure on transportation costs, thereby exacerbating the market's downturn.
Focusing on South Korea, the region witnessed the most pronounced price adjustments. The overall trend was distinctly negative, characterized by stark seasonality impacts and a strong correlation with global market dynamics. Compared to the same quarter last year, there was a notable 10% decrease in Polyamide prices, indicating a persistent weak demand environment. From the previous quarter in 2024, prices showed a marginal increase of 4%, reflecting some temporary stability amid broader declines. However, a comparison between the first and second half of Q2 2024 revealed a 5% price drop, underscoring the continuous downtrend. The quarter concluded with the price of Polyamide 6,6 GF FOB Busan at USD 2203/MT, underscoring the overall negative sentiment in the market.
In summary, Q2 2024 presented a challenging landscape for Polyamide in the APAC region, driven by weak demand, ample supply, and logistical constraints. For South Korea, these factors collectively fostered a consistently declining pricing environment, reflecting a broader instability in the market.
Europe
In Q2 2024, the Polyamide market in Europe witnessed a significant uptick in prices, influenced by several critical factors. The primary drivers behind this price surge included heightened raw material costs, particularly for feedstocks like Benzene, which saw substantial price escalations. Supply chain challenges, such as increased freight rates and tight vessel space availability, also exerted upward pressure on prices. Demand dynamics played a crucial role, with downstream sectors like textiles and automotive demonstrating sporadic but notable demand spikes, despite an overarching trend of cautious procurement due to economic uncertainties. Additionally, geopolitical tensions and high inflation rates contributed to supply disruptions and increased production costs, further supporting the price hikes.
In Germany, the market experienced the most pronounced price increases within Europe. The overall trend in Germany reflected a consistent upward trajectory throughout the quarter, with seasonality factors and a strong correlation to global raw material cost fluctuations. The price of Polyamide in Germany rose by 1% compared to the same quarter last year, indicating a marginal but steady increase. More notably, the prices surged by 5% from the previous quarter in 2024, underscoring a robust positive sentiment within the market. A comparative analysis between the first and second half of the quarter revealed a 2% price increment, further highlighting the persistent upward momentum.
Conclusively, the quarter-ending price for Polyamide 4,6 FOB Hamburg in Germany was USD 6920/MT. This pricing environment reflects a decidedly positive trend, driven by strong fundamentals and market dynamics, which have collectively fostered an environment of increasing prices and robust market sentiment.
MEA
In Q2 2024, the Middle East and Africa (MEA) region experienced a notable decline in Polyamide prices, primarily driven by several critical factors. Throughout this quarter, the market was characterized by subdued demand from key downstream sectors, including textiles and automotive, which significantly influenced pricing trends. Overcapacity within the market, coupled with ample inventories, further exacerbated the downward pressure on prices. Additionally, logistical challenges and elevated freight rates from overseas markets contributed to the overall decline. Geopolitical tensions in major sea routes also played a role in disrupting supply chains, further impacting the pricing landscape unfavorably.
Focusing on Saudi Arabia, where the most substantial price changes were observed, the general market sentiment remained negative throughout the quarter. Seasonality effects revealed a consistent decline in demand, particularly during periods of traditionally lower industrial activity. The overall trend in Saudi Arabia saw a -2% decline in Polyamide prices compared to the same quarter last year. From the previous quarter in 2024, prices recorded a marginal increase of 2%, indicating short-lived stability before resuming a downward trajectory. Comparing the first and second halves of the quarter, there was a -3% decrease in prices, underscoring the persistent weakening demand and market oversupply.
By the end of Q2 2024, the price of Polyamide Nylon 66 (Med Viscosity) CFR Al Jubail settled at USD 3840/MT. This consistent decline in prices reflects a challenging market environment marked by negative influences and limited positive catalysts. Overall, the pricing environment for Polyamide in the MEA region, and particularly in Saudi Arabia, has been negative, driven by weak demand, market oversupply, and logistical disruptions.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American Polyamide market encountered a moderate demand. The market situation remained stable, with a moderate supply, but several factors influenced the prices. The decline in demand from industries such as textiles, automotive, and electronics manufacturing sectors had a negative impact on the market. One significant shutdown occurred at the BASF SE plant in Freeport, USA, due to freezing weather conditions. The plant was closed from January 16, 2024, to January 25, 2024.
Additionally, ongoing conflicts in the Red Sea and shipping delays posed challenges to the global supply chain. The market also experienced price fluctuations due to volatile crude oil prices, which affected the prices of raw materials.
Overall, the North American Polyamide market encountered challenges that led to price fluctuations and moderate demand during the first quarter of 2024. The occurrence of plant shutdowns, including the one caused by freezing weather, added to the disruptions in the market. However, despite these challenges, the market remained stable, with Mexico experiencing the highest price change throughout the quarter.
APAC
In the first quarter of 2024, the Polyamide market in the APAC region exhibited a varied performance, maintaining stability despite a moderate equilibrium between supply and demand. Key market dynamics were influenced by factors such as the global economic slowdown, volatile crude oil prices, and limited downstream demand. Within China, market fluctuations arose from decreased operations in the textile and automotive industries. Nevertheless, pricing trends, seasonal patterns, and price correlations in China remained consistent throughout the quarter. Trading activities faced constraints due to conflicts in the Red Sea, resulting in heightened freight rates and diminished order volumes. According to data from the NBS, new export orders experienced a 0.2 percentage point decline in February compared to the previous month, persistently staying below the threshold and signaling a decrease in Polyamide exports from overseas markets. Consequently, Polyamide prices in China maintained relative stability throughout the quarter, with the quarter-ending price of Polyamide 6 (medium viscosity) FOB Dalian in China recorded at USD 2106/MT.
Europe
Quarter 1 of 2024 presented numerous challenges for the Polyamide market in Europe. The industry experienced a decline in demand and an increase in supply, primarily due to reduced demand from sectors like automotive and textile. This decrease in demand negatively impacted the market sentiment. Additionally, the volatility in raw material prices further contributed to the fluctuations in the cost of Polyamide. Longer delivery times, resulting from reduced demand, exacerbated the decline in prices. In Germany, a key player in the European market, Polyamide prices witnessed a decline of 1.8% in Q1 2024, with a trend ranging from stability to bearishness. The pricing trends in Germany were influenced by factors such as weak demand, reduced sales volumes, and disruptions in production schedules. The correlation between price and demand factors was moderate, with a seasonal trend of stability to bearishness. Comparing the price percentages between the first and second half of the quarter, the prices remained stable. In March, the global textile industry saw a slight decrease in the average order backlog, while capacity utilization rates experienced a minor increase to 70%. These changes suggest a gradual adaptation to the prevailing economic conditions.
MEA
Throughout the first quarter of 2024, the price of Polyamide rose from the previous quarter due to the high-cost pressure from the overseas markets. The Lunar holidays in Asia and the increase in ocean freight rates are all set for a challenging market. However, disruptions to input freight arrivals stemming from the Red Sea shipping crisis were noted to have impacted business capacity. This crisis also led to delays in delivery times, with companies reporting the poorest supplier performance in a year. Additionally, the tight supply of the product in the exporting country has contributed to the price increase. Midway through the quarter, the importing country experienced a surge in the price of feedstock Benzene, prompting manufacturers in the region to raise Polyamide prices in response to the heightened cost pressure. In March, the global textile average order backlog experienced a slight decrease, while capacity utilization rates saw a minor uptick to 70%. These shifts indicate a gradual adjustment to the current economic conditions.
For the Quarter Ending December 2023
North America
The North American Polyamide market in Q4 2023 witnessed a relatively increased trend, with moderate supply and demand conditions prevailing. In October, the Polyamide maintained its stable due to the sufficient availability to meet the domestic requirements. This change was primarily driven by a stable in raw material prices. In particular, the upstream crude oil saw a decrease of 1.2%, which subsequently lowered the production cost of Polyamide. Furthermore, the availability of the product among US merchants was sufficient to meet domestic demands. Furthermore, the global textile industry maintained a relatively stable and unchanging position in the market during this period.
In November, Manufacturers highlighted that the elevated prices of oil and oil-derived materials had contributed to higher operating expenses. Despite an observed improvement in demand conditions, the overall rate of growth remained marginal. Some companies continued to report a subdued sales environment, indicating that while there was a positive shift, it was not substantial. Despite the UAW strikes, there was an increase in auto sales in October, signalling a gradual upswing in demand for Polyamide within this industry.
In December, the growth in total new orders was primarily driven by domestic demand, while new international sales experienced a further decline. The Christmas and New Year holidays contributed to the marginal decline in the prices of Polyamide.
APAC
Polyamide pricing in the APAC region during Q4 of 2023 experienced a mixed market. The bearish market was due to the lackluster demand for the product, primarily attributed to the abundant supply prevalent in the market. The stability in the market during this period can be attributed to several factors, including year-end offer sales that led to destocking of materials. Additionally, Li Peng Enterprise in Changhua initiated a scheduled maintenance shutdown throughout December, and the plant was operational at only 20% to 30% capacity during this period. The market witnessed a moderate supply and low demand for Polyamide, leading to a bearish market. There was a 1% increase in price from the previous quarter, while the price percentage change of the first and second half of the quarter remained constant. The trend, seasonality, and correlation price percentage in China during the quarter were stable. Finally, the quarter ending price of Polyamide 4,6 (Chips) FOB Dalian in China was USD 7538/MT.
Europe
The Polyamide market in Europe experienced a mixed trend during the fourth quarter of 2023 for various reasons. In October, the rise in the cost of Polyamide 66 was influenced by tight supply and limited product availability in the market. Additionally, the constrained supply prompted merchants to restock the material to meet strong demand in the domestic market. However, in the mid and final months, the Polyamide market stabilized due to weak downstream orders from potential customers. Specifically, in December, the automotive industry witnessed a significant decline in new car registrations, with 241,883 fewer cars hitting the roads compared to the previous year—an alarming 23% decrease. Authorities in the industry attributed this disruption to the premature discontinuation of incentives for purchasing electric vehicles, resulting in the steepest drop in registrations for the year. This downturn in December marked a challenging conclusion to an otherwise mostly positive year for Germany. Due to a shortage of new orders, manufacturers persisted in reducing their backlog of work, experiencing another significant decrease throughout the month.
MEA
Polyamide Nylon 66 (Med Viscosity) CFR Al Jubail in the Middle East and Africa region witnessed a mixed quarter in Q4 2023. The market was primarily impacted by several factors, including moderate demand, stable supply, and currency fluctuations. In some countries, plant shutdowns also added to the cost pressure, impacting the price of raw material benzene across the globe. However, in Saudi Arabia, which witnessed the maximum changes in the price, the market remained stable due to the availability of inexpensive imported cargo from Asian regions. The interplay of moderate demand and inexpensive imports contributed to the ongoing bearish price movement. The price of Polyamide 66 remained weak throughout the quarter, with an 8% decrease from the same quarter last year and a 3% decrease from the previous quarter. However, there was a 1% price increase in the second half of the quarter compared to the first half. The quarter ending price for Polyamide Nylon 66 (Med Viscosity) CFR Al Jubail in Saudi Arabia was USD 3772/MT.
For the Quarter Ending September 2023
North America
Throughout the third quarter of 2023, the pricing dynamics of Polyamide 6 and Polyamide 66 exhibited a bearish trend in comparison to the preceding quarter. This trend was predominantly attributed to subdued demand, originating from a sluggish downstream textile, auto parts manufacturing industry in both the United States and international markets. The primary driver behind this decline was the persistent reduction in new order inflows for manufacturers during the third quarter. Companies have indicated that the decline in new sales can be attributed to customer apprehension and reduced spending enthusiasm in the face of challenging market conditions. Furthermore, the impact of rising interest rates has contributed to diminishing purchasing power, discouraging spending and investment. Manufacturers responded to lackluster demand and significantly extended lead times by depleting their inventory levels, resulting in increased material availability. Consequently, there has been a notable reduction in input purchases as companies adjust their spending to align with the decrease in new orders. At the close of the third quarter in 2023, the price of Polyamide 66 hovered around USD 4562 per metric ton on a Delivered (DEL) US Gulf basis.
APAC
Polyamide 66 prices in the Asian market displayed a consistent bearish trend, primarily influenced by the weak cost dynamics originating from the raw material Adipic Acid. This decline was notable and was primarily driven by a significant reduction in new orders from various sectors, including electrical components, auto parts manufacturing, and the textile industry. While there has been a recent decrease in textile exports, market participants hold expectations of a potential revival in this sector in the near future. Despite the current decrease in exports, there is a prevailing sense of optimism regarding the industry's prospects. In contrast, the demand for Polyamide 6 & 66 witnessed a period of subdued activity during the months of July and August. The increased sales in the automotive industry, although notable, did not result in a significant uptick in demand for Polyamide products. However, the pricing dynamics changed toward the end of the third quarter, with prices experiencing a sudden increase. This uptick was driven by heightened demand from the automotive and electrical industries. It is likely that this demand surge was related to the ongoing festive season in the Indian market, indicating the potential for increased production and consumption in these sectors.
Europe
Throughout the third quarter of 2023, the price of Polyamide exhibited a gradual declining trend, primarily driven by the persistently low demand from downstream industries such as automotive, construction, and textiles. The downward trajectory of Polyamide prices was emblematic of the precarious state of the order book, significantly undermining business confidence. In response to this deteriorating business environment, enterprises forecasted their lowest output estimates since the previous November. The waning confidence and weakening demand landscape prompted companies to downsize their workforce in July. The subsequent month, August, marked a significant decline in German business activity, with manufacturing output experiencing a more pronounced downturn, and services activity also contracting. This decline in economic activity prompted businesses to maintain a pessimistic outlook, largely due to factors such as rising interest rates, customer uncertainty, and elevated inflation. New export orders experienced a significant decline, primarily due to reduced sales across Europe. A similar trend was observed in the UK market during the third quarter of 2023.
For the Quarter Ending June 2023
North America
The price of Polyamide 6 saw a stable, but it was a weak market throughout the second quarter of 2023 due to the weak cost pressure from the feedstock Benzene and Caprolactam. The demand from the downstream textile industry was low, and the new orders from the merchants remained on a declining trend as the backlogs remained stable in June despite tight credit conditions and high-interest rates in the country. The supplier’s delivery times improved further and to the greatest extent on record in the US market. Companies were destocking the material in order to maintain the inventories at the minimum level amidst dwindling prices. Although easing from that seen in May, the pace of contraction in new export orders was steep overall in June. Some firms also noted that sufficient stock levels at clients had led to lower new orders. Overseas sales had dropped notably, and the domestic market deteriorated throughout the second quarter of 2023. The buyers were cautious and wait-and-see approach, engaging only a need-based purchase.
APAC
The price of Polyamide 66 witnessed a mixed trend in the Asian market throughout the second quarter of 2023. In Taiwan, China, and India, the Polyamide 66 market decreased in April due to the enterprises destocking the material in the market at lower prices because of gloomy global trading activities and deteriorated demand from the downstream textile industries. During May, the cost of Polyamide66 witnessed a sudden rise due to more inquiries from domestic merchants to restock the material in the market. At the end of the quarter, the market value for the product decreased gradually due to export orders fall at the sharpest rates, adding to a gathering global manufacturing export downturn. The procurement activities from the end-use industry were more reluctant due to few orders being received from the overseas market. The performance of the downstream textile was weak and remained flat over the second quarter of 2023 due to the low orders from the global market. High-interest rates and inflationary pressure from the overseas market dampened the demand for the product throughout the quarter.
Europe
The price of Polyamide 66 remained in a stable, but it was weak throughout the second quarter of 2023 due to the slow down in economic activities surrounded in the German market. High-interest and tight financial conditions were all attributed to dampening the demand from the textile and other allied industries. The purchasing activities from the textile industry remained flat and has not moved much in the market. At the conclusion of the second quarter, the German economy lost a significant amount of momentum as a result of weakening demand conditions and a corresponding slowdown in the expansion of economic activity. In the manufacturing sector, where order books for Polyamide 66 amid signs of customer hesitation and destocking, remained the key area of weakness. Discounting accelerated for manufacturers as costs fell and vendors remained competitive, while service fees rose sharply even as producer price inflation fell to a 20-month low. Lower business activity meant supply chains for the textile sector improved in the country.
South America
The price of Polyamide 66 remained stable, but it was weak throughout the second quarter of 2023 due to the slowdown in economic activities surrounding the Brazilian market. The continuous decline in the prices of Polyamide 66 was witnessed in the Brazilian market on account of slow demand from the downstream textile industry and enough stockpile availability. Further, the weak cost pressure from feedstock Benzene supported the downstream market including the PA derivative market. The buying sentiments from the consumers were declined due to the gloomy global market and the new orders from the overseas markets reduced further in Brazil. Brazil's exports meanwhile continued to contract at a marked pace as a strengthening upturn in services trade was countered by a steepening loss of goods exports. Supply chains for the textile industry improved throughout the nation as a result of lower business activity occurring in the market. The market had enough material to meet domestic demand from the textile industry.
Middle East
The price of PA 66 remained to bearish throughout the second quarter of 2023 due to the sluggish performance from the downstream textile industry. The performance of the textile industry remained weak, indicating low demand in the Saudi market. The procurement activities from the end-use industry were more reluctant due to few orders received from the domestic market. Further, cheap imported cargo from the overseas market was purchased for the Saudi market. Overall, the raw material benzene prices remained weak in the global market supported by the downstream derivative sectors. Further, the sufficient availability of the product in the market and lower demand from the downstream sectors alleviated the pressure from the textile supply chains. Moreover, enterprises were destocking the material in order to maintain the inventories at the minimum level amidst dwindling prices. Overall, the global Polyamide 66 market decreased due to the low trading activities. The merchants have enough inventory to meet the downstream businesses' demand for the material.
For the Quarter Ending March 2023
North America
The price of Polyamide6 showed an incline trend in the US market throughout the first quarter of 2023. Due to the severe winter weather and icy temperatures, BASF declared force majeure at its facility in Freeport, Texas, in the United States. Companies were experiencing difficulties obtaining Benzene, a raw material for the production of Polyamide6. In March, new commodity orders contracted for the 10th progressive month toward the finish of the primary quarter, as low client request conditions remained generally quelled. However, the contraction rate was only slight and the most lukewarm in ten months. The cost of Polyamide6 hovered around USD 3644/MT on a FOB Texas basis during the end of the quarter.
APAC
Throughout the first quarter of 2023, China's price trends for nylon 6 and 66 fluctuated. The market for nylon six was pushed down following a sharp rally during the Spring Festival as a result of a somewhat slow downstream follow-up. However, unlike November and December of last year, when performance in the downstream sector of the textile industry was quite bad, and some weaving facilities even shut down early owing to benefits, epidemics, and other factors, this year's performance in the downstream sector of the textile industry has been exceptionally terrible. Nylon filament output and downstream production restarts have outperformed forecasts in the first quarter of this year, but the engineering plastics sector as a whole has been in the doldrums.
Europe
During the first quarter of 2023, the market for Polyamide66 witnessed a declining trend in the European market due to the product's widespread availability in the market. German exports are being negatively impacted by the weak global economy, but rising inflation rates were also having a negative impact on consumer spending and trading activity due to diminishing purchasing power and dramatically higher financing costs. ECB has raised interest in controlling the inflation rate and willingness to provide banks with liquidity in the face of recent banking sector turmoil. When interest rates rise, demand usually falls, and this can cause the global textile industry to suffer.
For the Quarter Ending December 2022
North America
In the quarter ending in 2022, the price of Polyamide declined in the North American region. According to the players in the market, the majority of the purchases were based on demand, and regular support came from upstream raw materials. There was no significant port congestion in December. The price of Polyamide was lowered as a result of the abundant supply that existed on the domestic market. In addition, domestic consumers had a wait-and-buy attitude in the face of inflation. In December, purchasers reduced their orders because there was less demand in the market from the downstream industry.
APAC
In India, Polyamide saw an increased price trend for the first two months but decreased in the latter month of Q4 2022. The festive season and high demand from the downstream textile industries further inclined the product cost during the first half of the quarter. The limited availability of the product and the lower stock from the traders have raised the cost of the product in the Indian market. At the same time, the weak demand from the downstream industries was observed due to the negative market sentiments in the Chinese market. The ample availability of the product and steady supply from the manufacturers have also reduced the cost of the product. Due to Zero COVID-19 restrictions, the orders from the buyers were reduced, and inventories got stockpiled.
Europe
The price of Polyamide in Europe increased for the first two months but decreased for the final month of the fourth quarter of 2022. Due to rising costs of energy and raw materials, DOMO chemicals raised the price of Polyamide Grades on October 1, 2022. The Italy-based company Radici has declared force majeure and shut down the Polyamide 6.6 plant due to the region's high raw material costs and natural gas prices. The supply chain was disrupted, several European ports were congested, and product delivery was delayed. The demand from the downstream industry was weak, and the consumers were reluctant to buy the product due to the imminent recession and inflation in the region.
For the Quarter Ending September 2022
North America
In the North American region, the Polyamide price saw a downward trajectory throughout the third quarter of 2022. The demand for the product from the downstream textile industry was observed to fall, and expenses of feedstock Caprolactam kept fluctuating in the region. The upstream Benzene also dropped and supported the downstream derivative. Due to lower demand, the inventories surged, and more products were stockpiled with the traders and suppliers in the regional market. In the third quarter, the price of Polyamide 6 increased by about 2.3% on a DLF US Gulf basis compared to the previous quarter ending.
Asia Pacific
In the Asia Pacific region, the market sentiments for Polyamide witnessed a decline throughout the third quarter of 2022. In China, the price trend of raw material pure benzene was poor, and the cost support of caprolactam was weak in the Chinese domestic market. The supply side of PA6 was abundant, and the profit of aggregation enterprises was general. The operating cost remained constrained due to low crude values in the Asian region. In India, the high inventories from exporting countries like China and South Korea curbed the price movement
Europe
The price of Polyamide fluctuates in the European region throughout the third quarter of 2022. The increase in the energy values in the European region brought an unprecedented scenario, including high uncertainty and limited visibility. However, the trucking industry also experienced difficulties due to a lack of drivers. The Italy-based company Radici declared force majeure and shut down of Polyamide 6.6 plant on mid of September due to high raw material costs and natural gas prices. The other European countries imported Polyamide from Italy, and this sudden announcement ultimately affected the market and changed the price movement.
For the Quarter Ending June 2022
North America
In the North American region, the prices of Polyamide surged during the Q2 of 2022, with costs ranging from USD 4803/ton Polyamide 6,6 DEL US Gulf in the USA with a quarterly escalation of 3.9% as per recorded by Chem Analyst pricing team data. The market saw lower inventories and lesser product stockpiling with the traders and the suppliers. Transportation and turmoil in US ports have also caused delays in the arrival and processing of imports into the United States. This led to a shortage of shipments and indirectly caused a deficiency of the products in the regional market, thus escalating the prices.
Asia
The prices of Polyamide were observed to be falling in the Asian market during the second quarter of 2022, with costs ranging at INR 275000/ton Nylon 6 Extrusion Grade Ex-Mumbai and a quarterly decline of 0.8% in India as per recorded by Chem Analyst pricing team data. The cost of PA66 support is not reasonable, the installation load of domestic PA66 companies is heavy, and the supply in the market is abundant. On the demand side, current terminal companies tend to buy only to maintain production, and resistance to the high-priced collection is relatively strong. The burden on downstream companies was narrow, and demand slowed as the market entered the off-season. Buyers were cautious about receiving goods, buying small orders was primarily aimed at maintaining production, and trade conditions were poor.
Europe
Polyamide prices rose in the European market during Q2, 2022, with prices hovering around USD 5543/ton Polyamide GF 66 DDP Hamburg in Germany and a quarterly escalation of 4% as recorded by Chem Analyst pricing team data. Increased demand for the product from the importing countries like Italy, Belgium, and France put cost pressure on the prices in the regional market. Fluctuating global freight charges due to the ongoing war between Russia and Ukraine supported the market upward. The varying prices of upstream feedstock Adipic Acid due to the fluctuating petrochemicals cost was also one of the primary reasons for the prices to surge.
For the Quarter Ending March 2022
North America
Polyamide values witnessed decrement throughout the first quarter in the North American market. The Polyamide 6, 66 & 46 values decreased by 1%, 2% & 0.3% from the last quarter of 2021 and settled at USD 3575, USD 4445 & USD 12304 per tonne respectively, by the end of Q1. Reduced demand from the downstream textile sector in the winter months dwindled the prices. Furthermore, low prices of feedstock Caprolactam influenced the values of Polyamide in North America. However, increase in Adipic Acid feedstock values towards the end of Q1 restrained the drastic fall in the prices of Polyamide 46.
Asia Pacific
Polyamide prices remained uncertain in the Asian region due to the diverse demand for Nylon in Asia because of the seasonal conditions. The values dropped in the Chinese market due to low demand from the downstream textile sector. Polyamide 6, 66 & 46 prices were accessed at USD 2550, USD 5050 & USD 10115 per tonne, respectively, by the end of Q1. In the Indian market, Polyamide values showcased a marginal uptrend because of the firm demand from the textile industry. However, feed Caprolactam and Adipic Acid prices rose in the Asian market during Q1.
Europe
Polyamide prices fluctuated throughout Q1 in the European market. The prices of Polyamide 6, 66,46 decreased in January and February due to less demand from the downstream textile sector. The increased value of crude oil due to the conflict in the East European region impacted the feedstock Adipic Acid & Caprolactam values which increased its prices towards the end of Q1. Polyamide 6,66 & 46 settled at USD 4255, USD 5795 & USD 7025 per tonne respectively by the end of Q1, with a drop of 11%,13% & 2% in their values from the last quarter.
For the Quarter Ending December 2021
North America
In North America, Polyamide values registered an upward trend during the last quarter of 2021. Constrained availability of feedstocks including Adipic Acid, and Caprolactam led to the surge in the prices of Polyamide during the quarter. Polyamide demand remained firm throughout the quarter supported by the improvement in the offtakes from the downstream industries. Despite a comparatively underwhelming performance from automotive sector on annual basis, demand for polyamide remained strong throughout the year. US Automotive sector, a key sector for polyamide consumption, has measured a dip in manufacturing of vehicles in 2021 compared to previous years. Prices of Polyamide 6 and Polyamide 6,6 were assessed at USD 3795 per MT and USD 4750 per MT in December on FOB basis, respectively.
APAC
Overall, Polyamide market sentiment was weak in the last quarter owing to eased cost support from feedstocks in the domestic market of China. The commissioning of new coal mines under the Chinese authorities ramped up efforts to ensure energy supplies eased the operation cost at several facilities throughout China. FOB Dalian discussions for medium viscosity grade for PA 66 and PA 6 were assessed at USD 6260 per tonne and USD 2660 per tonne, respectively. In India, global inflationary trend was clearly reflected in the Polyamide price trend which has taken support from higher prices of feedstocks and increased demand from automotive and fibre/textile sectors. Surging upstream rates were strongly reflected in offers with immediate effect due to firm production costs. Domestic Nylon 6 rates have surged to INR 264620 per MT Ex-Mumbai in December, showcasing a consistent surge in the last three months.
Europe
During the Q4, prices of Polyamide increased as one of Europe's largest polymer producers, LyondellBasell press release last week and implemented an increase in the surcharge on natural gas and electricity throughout Europe on all its polymer products, effective from 1 November. This overall drastic price increment leads to an increase in the price of PAO as the feedstock Nylon productivity was impacted tending to impact the demand as well. The prices of Polyamide 6 FOB Hamburg (Germany) stood at USD 4945/MT and Polyamide 66 DDP Hamburg (Germany) USD 6835/MT in November 2021.
For the Quarter Ending September 2021
North America
In North America, the Polyamide values registered an upward trend during the third quarter of 2021. Constrained availability of feedstocks including Adipic Acid, and Caprolactam led to the surge in the prices of Polyamide in this timeframe. The Polyamide demand remained firm throughout the quarter supported by the improvement in the offtakes from the downstream industries. In addition, the arrival of Ida hurricane in August disrupted the production as well as supply rates that consequently tightened the supply of Polyamide and its downstream products in the North American market. Thus, a constant price hike was observed in the US owing to the limited availability and steady demand pattern during the quarter.
Asia Pacific
In Q3 2021, the Polyamide market in Asia reported tumbling pricing trend backed by the improved production rates and ample supply of the product. In Chinese market, an overall stability in the Polyamide prices was observed during the third quarter. While in India, a downward trend in the value of Polyamide was observed throughout the quarter. The improvement in the exports from India to the US apparel market was witnessed at the beginning of the quarter. However, in the domestic market the demand for Polyamide products remained narrowed. Therefore, Ex Mumbai prices of Polyamide 6,6 stood at USD 3038.29/MT in July and dropped to USD 2966.70/MT in September.
Europe
Polyamide prices remained firm throughout Q3 in the European market backed by the sturdy demand from downstream sectors including textile and automotive. In addition, hike in the feedstock values along with the burden on the manufacturers to fulfil the previous backlogs exuberated the prices of Polyamide in the region. Besides, extremely high freight charges and shortage of containers led to the supply shortage that further sent ripples to the prices of Polyamide in the region. DDP Hamburg prices of Polyamide 6,6 witnessed an increment of USD 165 per MT since July.
For the Quarter Ending June 2021
North America
During Q2 2021, Polyamide supply outlook in the North American market remained tight owing to limited availability of the upstream feedstocks, while Nylon 6,6 producers were extremely anxious over low production of Adipic Acid. Lower production of Caprolactam kept the supplies of the Nylon 6 lesser than anticipated. Furthermore, the short supply situation was exacerbated by turnaround at several plants in the region, which resultantly hiked the regional offers Polyamide. The pricing continuously rallied upwards taking FOB Texas discussions to USD 3720 per tonne in June for Polyamide 6. The demand was exceptional from the downstream industries, as the construction sector witnessed the seasonal hike throughout the quarter, and the consistent surge in enquiries from the automotive sector and daily household uses.
Asia Pacific
During the second quarter, supplies of Polyamide in the Asia Pacific region showcased mixed trends as the limited availability of the upstream Caprolactam restricted the production of the Nylon 6 and Nylon 6, 6 in the regional domestic market. Whereas in China, the consumption taxes imposed on the imports of mixed aromatics commodities and rising inflation rate in the Chinese domestic market exacerbated the tightness of the Polyamide resins. Subdued market activities in India due to the impact of second COVID wave made spot buyers reluctant to procure large volumes which maintained stagnancy over the Indian Polyamide offers throughout the second quarter. Ex-Works Mumbai (India) prices were assessed at USD 3226 per tonne and USD 2957 per tonne for Nylon 66 and Nylon 6 extrusion grade respectively in June.
Europe
In the European market, the overall supply of Polyamide remained constrained during the second quarter of 2021, owing to planned and unplanned turnarounds at various Nylon 6 facilities in Q2. Production issues were reported due to the severe shortage of the feedstock Caprolactam in the regional market. Demand was exceptional from the downstream market as the region observed a seasonal hike in demand from the building and construction industries, and the offtakes were also consistent from the electronics and textile industries to cope up with the economic rebound. Due to the supply demand imbalance, Polyamide prices remained on an uptrend throughout the quarter.
For the Quarter Ending March 2021
North America
Most of the production facilities in the USA Gulf region were forced to temporary shutdown in mid-February as the regional infrastructure collapsed amid the severe freeze weather conditions which led to limited availability of the upstream feedstocks. Hence, the supplies witnessed significant downfall amid the healthy-to-strong demand from the downstream industries. BASF hiked the prices of Polyamide by +USD 530/ton for the April delivery in the North American region.
Asia-Pacific (APAC)
The Asian Polyamide market remained constrained amid short supplies during the Q1 2021, majorly caused by the lack of key feedstock caprolactam as the regional plants were operating at reduced efficiencies. Demand during the first quarter was upbeat as several Chinese buyers started replenishing their inventories ahead of Chinese lunar new year holidays, though constant consumption from the automotive players kept the prices phenomenally high across the Asian markets. FOB prices of Polyamide 66 were averaged USD 6450 per MT in China, with the graph maintaining the upward trajectory for a larger part of the quarter.
Europe
Severe cold weather in the northwest European region tightened the Polyamide supplies during Q1 2021. Whereas several major plants were operating at reduced capacity due to the unavailability of key feedstocks and raw materials amid the transportation hiccups throughout the region. The demand however surged due to improved consumption from the downstream automotive, construction and textile sector. Reduced imports from the USA led to the spike in the prices of Polyamide in European region.
For the Quarter Ending September 2020
North America
Outages due to hurricane Laura were heard impending little to no effect on the supply of US nylon 6 and 6,6. US’ polymers and fibers giant INVISTA temporarily shut operations at its Texas facility ahead of Hurricane Laura but the turnaround had a limited effect on the regional supply. Nylon demand in the region maintained pace with the downstream construction and automotive sector which showed signs of revival in the third quarter after witnessing a major slump in Q2. Some producers preferred to operate at curtailed rates knowing that the sector would get back to normalcy only in 2021. Players report that the demand for construction applications has been on a rise backed by strong demand for Nylon films for food packaging. This remained indicative of the improved outlook for Q4 compared to the Q3 levels, which however remained still below the previous year’s levels.
Asia
The Asian Polyamide market remained muted in the quarter ending September due to depressed demand for finished goods. Market players seemed divided over the regional outlook during the quarter. Producers maintained low operating rates as they saw almost no need to ramp up production considering the demand slowdown. Downstream manufacturing run rates were curtailed amid slow end-use consumption forcing Chinese factories to operate at an average of 65-75% to balance their inventory levels. Nylon chip imports in China slipped in Q3 as the summer months posed a typical lull period for the market while some market players stood hopeful that the market may see active restocking ahead of the long holiday in early October. With players offering hefty discounts, spot discussions for polyamide chips were heard trading around USD 1200-1300 per tonne CFR China in mid-September.
Europe
Downstream buying which got affected due to lacklustre automotive demand showed gradual recovery in Q3, allowing some producers to ramp up their Nylon-6,6 production outputs. Players maintained a cautious stance amid looming market uncertainties as the number of cases resurge strongly in Europe, raising fears of the second coronavirus wave. Moving into September, buoyant demand for engineering plastics, helped in fetching high volume orders with sales figures outperforming September 2019 for some producers. Contract prices for industrial grade Nylon 6,6 oscillated between rollovers and decrease, settling around USD 4650-4670 per tonne NWE in September. However, market took off from the ground levels as Nylon consumption in textile applications gained strength for a number of household products backed by growing demand from the apparel sector for new seasonal collections ahead of Christmas and New Year.
