China Polyamide Prices remain Weak due to the Ease in Feedstocks Coupled with Low Demand
China Polyamide Prices remain Weak due to the Ease in Feedstocks Coupled with Low Demand

China Polyamide Prices remain Weak due to the Ease in Feedstocks Coupled with Low Demand

  • 03-May-2024 2:37 PM
  • Journalist: Stella Fernandes

The pricing pressure from low-cost feedstocks, Caprolactam and Adipic Acid, has kept the prices of Polyamide 6 and 66 low in the Chinese market in recent weeks. The Polyamide market in China is encountering difficulties due to ample supply and declining demand from downstream industries, creating a challenging environment for producers and traders. There has been no noticeable increase in stocking activity before the holiday period. Traders are maintaining stable prices, with moderate demand supporting average levels for PA66. As a result, the cost of Polyamide 6 (Medium Viscosity) decreased by 1.3% on a FOB Dalian basis, and Polyamide 66 remained stable, reflecting the broader market conditions.

Supply of Polyamide in China remains abundant, with production levels exceeding current demand. This oversupply situation is partly a result of increased production capacities in the region, driven by early-stage maintenance companies that have progressively resumed operations, weekly production is on the upswing, leading to mounting supply pressure.  Despite efforts to align production with demand, the market remains flooded with Polyamide, putting pressure on prices.

Demand for Polyamide from downstream industries such as textiles, electrical, and others has been weakening. As the holiday season approaches, some stocking needs are being released, providing a slight uptick in demand in the middle of April 2024. However, the recent decline in Polyamide prices, particularly for PA6, has made downstream enterprises cautious about restocking. The decline in prices is likely a response to the oversupply situation, as producers seek to stimulate demand by offering competitive pricing.

There are relatively few new orders in downstream sectors, leading to a cautious market atmosphere. Domestic merchants are relying on existing stock levels to fulfill downstream industry needs, indicating a conservative approach to market dynamics and demand fluctuations.

Looking ahead, the Polyamide market in China is expected to continue facing challenges. The surplus in supply is likely to persist, keeping prices under pressure. Additionally, the uncertain economic environment and cautious behavior of downstream industries are expected to limit the growth in demand.

In conclusion, the Polyamide market in China is grappling with abundant supply and weakening demand, creating a challenging environment for market participants. Polyamide prices are anticipated to remain stable in the upcoming weeks, primarily due to ample availability and restrained demand from downstream sectors. The market is expected to maintain a balanced outlook, with prices likely to remain at current levels as supply meets the subdued demand for Polyamide.

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