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Feeble Demand Declines German Polyamide Prices in the First half of Jan 2024
Feeble Demand Declines German Polyamide Prices in the First half of Jan 2024

Feeble Demand Declines German Polyamide Prices in the First half of Jan 2024

  • 17-Jan-2024 2:11 PM
  • Journalist: Sasha Fernandes

Over the past two weeks, Polyamide's pricing trend on the German market has been unfavourable. The main cause of this tendency is the low Polyamide consumption in downstream industries including the textile, electrical, and automotive sectors. A bearish market environment has been brought about by the weak demand in these important industries, which has also put downward pressure on Polyamide pricing. The consumption patterns and, in turn, the pricing trends of Polyamide in the German market can be influenced by a number of factors, including the state of the economy, industrial activity, and globally market dynamics.

The weakness in feedstock prices, specifically Adipic Acid and Caprolactam, has had a notable impact on the Eurozone's largest economy. This influence has extended to downstream derivative sectors, such as Polyamide 6 and 66. The subdued pricing of Adipic Acid and Caprolactam, which are essential components in the production of Polyamide, contributes to a broader effect on the pricing and dynamics of Polyamide 6 and 66. The Polyamide market in Germany experienced a situation where there was an ample supply of Polyamide to meet domestic requirements. Merchants in the German market was operating based on existing stock levels, which resulted in a decline in fresh orders. The sufficient supply and the utilization of existing stock contributed to a cautious approach among merchants, affecting the generation of new orders in the market. Europe is being impacted by the volatility of the global economy, as well as the reduction in purchasing power due to high interest rates and inflation.

December 2023 saw a further decline in purchasing activity, which persisted into January 2024 as manufacturers sought to maximise their stock levels. In particular, the country saw a sharp reduction in the number of new car registrations in the automotive sector, with 241,883 fewer cars being registered nationwide than the previous year—a noteworthy 23% decline. Authorities in the industry cited this disruption on the early removal of incentives for buying electric cars, which resulted in the year-long decline in registrations. The previously listed facts suggest a decreased use of Polyamide in the automobile industry during that specific time frame.

Anticipations suggest that the demand for Polyamide from downstream sectors, specifically the automotive and textile industries, is poised to decrease in the upcoming weeks. This projection is rooted in the current weak demand conditions prevailing across Europe. The ongoing economic factors and market dynamics are contributing to a subdued demand scenario, prompting expectations of a reduction in the utilization of Polyamide within the sectors such as automotive and textiles.

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