Polyamide 66 prices Slump further in December, prices deteriorated by 5% in the last month

Polyamide market showed no signs of recovery in December as well, market followed the downtrend of previous months. Polyamide 66 (PA66) market sentiment remained lacklustre stemming from declining feedstocks and deteriorated demand from downstream industries. Polyamide 66 prices fall by more than 5% in December as the buying interest from downstream users and other market participants waned in the last month of the year.

Performance of feedstocks in December has been underwhelming where Adipic acid and Caprolactam prices fell by significant margins. There was no news of production curtailment in feedstocks and consequently availability of feedstocks remained strong throughout the month. Furthermore, operating rates of PA66 were assessed at more than 70% which availed ample material in the domestic market. Consistent production amid muted buying interest pressured manufacturers to keep a lid on overall prices of PA66.

Demand for Polyamide 66 has been on the declining trend in the last quarter which was epitomized by consistent fall in prices of the material. Automotive industry, key sector of PA 66 consumption, maintained stagnancy in offtakes which further deterred the market sentiment. The performance of automobile industry in China has been underwhelming and followed the global shortage caused by global chip shortage and other regional factors. Holiday season in Far East Asia and West has also resulted in drop of Chinese PA 66 exports.

As per ChemAnalyst, “Polyamide 66 market is likely to gain momentum in early Q1 as consumption from downstream packaging, automotive and other industries is expected to improve in coming weeks. However, resurgence in cases can derail the above momentum and may send a wave of conservatism among the downstream users and other market participants. There have also been some speculations regarding the production rates in coming months as China authorities are in line to put strict production diktat in order to curb pollution and have more aesthetic appeal for the upcoming winter Olympics. This may hamper the supply side dynamics and may stir a further spike in prices of polyamide. Early signs of recovery can be estimated from the recent jump in prices of caprolactam in first week of 2022.”