Breaking the Barrier of Raw Material Costs, US Polyamide Prices Rise Again in mid-November
Breaking the Barrier of Raw Material Costs, US Polyamide Prices Rise Again in mid-November

Breaking the Barrier of Raw Material Costs, US Polyamide Prices Rise Again in mid-November

  • 20-Nov-2023 3:32 PM
  • Journalist: Nicholas Seifield

The price of Polyamide in the US market has continued to follow an increasing pattern in the mid of the fourth quarter. This upward trend is primarily attributed to the continual improvement observed in downstream industries. The ongoing positive performance in these industries has contributed to the upward trajectory of Polyamide prices, reflecting a heightened demand or other favourable factors influencing the market dynamics during this period.

Despite the prevailing UAW (United Auto Workers) strike, the downstream automotive industry in the US has continued to demonstrate robust results in terms of new vehicle sales. In October 2023, compared to the same period in the previous year (October 2022), US auto sales experienced a 2% increase. However, it's important to note that the automotive sector also faced challenges during this period, with production and logistics becoming difficult. Some manufacturing plants were forced to close due to the ongoing UAW labour strikes against major automotive companies such as GM (General Motors), Ford, and Stellantis. Despite these challenges, the industry managed to maintain healthy sales figures. The sales figures indicate that the consumption of Polyamide in the automotive industry has remained robust in the US market. This suggests a strong and sustained demand for Polyamide-based products within the automotive sector, showcasing its continued significance as a material of choice in various applications within the industry.

The total growth in new orders was primarily driven by domestic demand, while new international sales experienced a further decline, and the pace of decline was slightly sharper in October compared to September. The strength of the US dollar was cited as a factor that hindered global competitiveness and foreign sales. Additionally, challenging economic conditions in key export markets contributed to the decline in international sales. These factors collectively influenced the dynamics of new orders, with domestic demand playing a more prominent role in driving overall growth. Additionally, the prices of Polyamide 6 were settled at USD 3560/MT on a DDP basis in the US Gulf region in the third week of November 2023.

In the US market, despite a decline in raw material prices, the cost of Polyamide has been on an upward trajectory. This increase can be attributed to strong consumption of the product by downstream sectors. Purchasing activities from potential customers in the domestic market have shown optimism, with a focus on stocking up on the material for anticipated future demand conditions. This trend suggests that the demand from downstream sectors is playing a significant role in influencing the overall pricing dynamics of Polyamide, outweighing the impact of raw material price fluctuations.

The factors mentioned above suggest that the market price of Polyamide in the US is likely to increase in the coming weeks. The robust performance and growth figures in the automotive industry, coupled with strong consumption of Polyamide, point towards an upward trend in pricing. Increased demand from the automotive sector, along with positive purchasing activities, may contribute to a rise in Polyamide prices in the domestic market.

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