European Polyamide Prices Remain Stable in October 2023 Amidst Low Demand

In October 2023, the price of Polyamide in the European region remained within a narrow range. This price stability was primarily a result of low orders received from downstream industries, including the automotive, textile, and other related sectors. The Polyamide production levels in Germany, a significant manufacturing hub, faced challenges due to a sustained downturn in new orders from potential customers. This overall scenario reflects the impact of reduced demand from key industries, which stabilized the price of Polyamide in the European market.

In October 2023, the demand for Polyamide from the downstream automotive sectors in the German market remained stagnant and didn't significantly improve. A similar trend was observed in the textile industry. Polyamide manufacturers responded to these market conditions by reducing their inventory levels at the beginning of the fourth quarter. This reduction was driven by weaker customer demand, pressure on cash flow, and improved material availability. A notable decline in pending workloads was observed, indicating that companies were actively trying to support their production activities due to the substantial weakness in demand. The supply of Polyamide in October 2023 improved in terms of delivery times to customer points. Additionally, there was an accelerated decrease in staffing numbers among these manufacturers, reflecting a worsening outlook and growth expectations for the firms in the Polyamide industry. These trends collectively underscore the challenging market conditions and efforts to adapt to them in the German Polyamide sector during that period.

Conversely, the manufacturing sector in the UK experienced a contraction as the final quarter began. In October, there were decreases in production, new orders, and employment. The simultaneous declines in both production and new order intake prompted manufacturers to exercise greater caution throughout the month. This caution was underscored by additional reductions in procurement, inventories of purchased materials, and finished product stocks as businesses adjusted to the existing demand, curtailed their expenses, and safeguarded their cash flow.

As per ChemAnalyst, the cost of Polyamide 6 GF was settled at USD 4031/MT on a DDP Hamburg basis during the final week of October 2023.

Based on the price trend observed in October and the market conditions in the Eurozone, it appears that the Polyamide market is expected to experience fluctuations during this quarter. The uncertainties in the Eurozone market, coupled with high-interest rates, could potentially dampen the demand for this product. However, there is optimism that the market may show signs of recovery in the following year.