Polyamide 66 Prices in USA Continue to Fall as the Adipic Acid Polyamide 66 Spread Narrows Down
- 15-Sep-2021 2:00 PM
- Journalist: Gabreilla Figueroa
Polyamide 66 (PA 66) prices reached nearly two-year high in May 2021 with the prices at $4371 per tonne due to the deep freeze in the USA which curtailed feedstock supplies. The prices since then have been declining gradually.
The prices were $4062 per tonne in July which further declined to $3753 per tonne in August and the prices have further reduced to $3642 per tonne in mid-September. Moreover, the spread between the Polyamide 66 and feedstock Adipic Acid prices has been narrowing down with the prices of Adipic Acid rising gradually in July-September due to supply shortages.
As the spread further narrows down in the upcoming months, the prices of Polyamide 66 are expected to stabilize, settling down to price levels before May which stood at $3276 per tonne.
Polyamide 66 is a product of polycondensation of Adipic Acid and Hexamethylenediamine. It has high mechanical strength, high hardness, deformation stability, and heat resistance. It also possesses high climate and chemical resistance. The major applications of Polyamide 66 are textiles, engineering plastics, automotive, electricals, and sports equipment. The global demand for Polyamide 66 stood at around 4 million tonnes in 2020 and the demand is expected to grow at a healthy CAGR of around 4%.
Adipic Acid is an organic carboxylic acid. It is produced via oxidation of Ketone-Alcohol (KA) oil in the presence of Nitric Acid. It is mainly used to manufacture polyamides. The global demand for Adipic Acid stood at around 3.9 million tonnes in 2020 and the demand is expected to grow at a CAGR of 4.7%.
As per ChemAnalyst, “with the narrowing down of the Polyamide 66 Adipic Acid spread, the margins of major producers are expected to come down in the upcoming month. The prices of Polyamide 66 are expected to stabilize to May levels and the prices of Adipic Acid are expected to stay on a gradually rising trajectory.”