Polyamide Market Shift Momentum, Prices Declined in February 2022

Polyamide prices observed sharp decline in prices as market dynamics change balance after chaotic 2021. In the latest assessments, as on 1st week of February, Polyamide 6 prices were assessed at USD 3640 per MT while Polyamide 6,6 prices were placed at USD 4540 per MT on FOB basis.

Polyamide market has remained on the uptrend throughout 2021 owing to demand recovery and production disruption throughout the year. However, Polyamide market turned bearish in 2022 signifying change in market sentiment in last few weeks.

Meanwhile, feedstock adipic acid and caprolactam prices have stabilized in January due to stable offtakes from downstream industries amid ample production availing strong supply of the material in the regional market. This has resulted in weak cost pressure over Polyamides.

Freight charges have declined in January 2022, however recent resurgence in buying activities across the world has prompted another spike in freight charges since the beginning of February. Port congestion on Western Coast has ease out after registering whopping numbers of vessels stranded and awaited berth along the port of long beach.

In Brazil, Polyamide prices have also been weak in last couple of weeks owing to stagnant demand fundamentals and improved supply availability in the regional market. Production levels have been optimum stemming from little to no production disruptions in Brazil. There has been no news of scheduled or unscheduled plant shutdown in Brazil. This has provided ample opportunity for market participants to stock inventories after 2021 volatility.

As per ChemAnalyst, “Polyamide market is expected to continue on a bearish trend in coming weeks owing to stabilization in demand fundamentals and weak cost pressure. Supply of Polyamide has also increased after upheaval in previous quarters. Polyamide prices have been off the charts in last couple of quarters and bearish sentiment in Q1 2022 is likely to auger well for the downstream buyers and prices moderation is expected to take place and prices may turn towards 2019 levels after strong turmoil in 2020 and 2021.”