European Polyamide Prices Dip as Downstream Sectors Weaken in November 2023
European Polyamide Prices Dip as Downstream Sectors Weaken in November 2023

European Polyamide Prices Dip as Downstream Sectors Weaken in November 2023

  • 14-Dec-2023 3:00 PM
  • Journalist: Nina Jiang

The cost of Polyamide has experienced a downward trend in the German market following a period of relatively narrow fluctuations. The demand conditions for Polyamide in key sectors such as automotive and electronics have shown a notable and persistent downturn, as indicated by a significant decline in new orders throughout the month of November. Merchants in the domestic market are intensifying the destocking of Polyamide. This destocking is attributed to the conclusion of the year, as businesses typically reassess and manage their inventory levels, and also reflects the challenges posed by a struggling economy.

In November, the new-car market in Germany experienced a decline, with 245,701 deliveries recorded, marking a 5.7% decrease compared to the same month in the previous year. This suggests a contraction in new-car sales during that specific period.

Within the automotive industry, companies expressed a relatively positive assessment of their current business situation, noting an improvement compared to the preceding month. However, this optimism is tempered by a more cautious outlook for the months ahead. The industry participants seem to be adopting a prudent stance, possibly influenced by factors such as economic uncertainties, shifting consumer behaviors, and global market dynamics. The contrast between the positive evaluation of the current business situation and the heightened pessimism about the future underscores the complex and dynamic nature of the automotive market in Germany.

The factors mentioned above strongly suggest that the demand for Polyamide in the specified automotive industry is poised to decline in the coming weeks.

Additionally, the electronic industry is facing global challenges, with merchants in the European market receiving significantly fewer fresh orders from potential customers indicating the demand for Polyamide in electronic industry also weaken. This reduction in new orders aligns with a broader trend of decreased production and purchasing activity among global electronics manufacturers in November. Despite the industry's struggles, there have been positive developments, including better Polyamide availability and improvements in supply conditions. As demand softened, these improvements enabled lead times to shorten in November, reflecting a certain level of adaptability and adjustment within the electronic manufacturing sector.

The lacklustre demand for the Polyamide can be primarily attributed to the abundant supply prevalent in the market. The ample availability of Polyamide created a scenario where consumers did not feel the need to actively seek out the product, as it was readily accessible. Projected trends indicate a probable decline in Polyamide prices during the ongoing month of December, primarily attributed to destocking initiatives. The initial months of the approaching year are expected to see a potential stabilization in Polyamide prices along with modest increases in demand. Suppliers may display a willingness to boost their profit margins in this period.

Related News

DOMO Chemicals Addresses Growing Demand in China with TECHNYL Polyamide Production Plant
  • 06-May-2024 6:17 PM
  • Journalist: Bob Duffler
China Polyamide Prices remain Weak due to the Ease in Feedstocks Coupled with Low Demand
  • 03-May-2024 2:37 PM
  • Journalist: Stella Fernandes
Clariant Unveils Novel Solutions Addressing Plastic Environmental Impact at Chinaplas 2024
  • 25-Apr-2024 2:22 PM
  • Journalist: Nicholas Seifield
Polyamide in Europe witness Sharp Increase Despite Average Demand
  • 25-Apr-2024 2:28 PM
  • Journalist: Patricia Jose Perez