Polyamide Prices in China continue their incessant fall in February
- 03-Mar-2022 1:52 PM
- Journalist: Li Hua
The Polyamide market in China continue to weaken as February comes to its conclusion. Prices of Polyamide have declined for the 5th week in a row on the back of sluggish demand fundamentals despite strong cost pressure from feedstocks. The weak output of the automotive industry continues to plague the procurement of many key polymers and elastomers.
Prices of Polyamide have dropped since the beginning of the month and as of last week of February, Polyamide 6 were assessed at USD 2395 per MT on an FOB basis while Polyamide 66 prices were measured at USD 5140 per MT. Polyamide 66 prices have declined by 6.5% since the conclusion of January 2022.
Manufacturers have stated that prices of feedstocks Adipic acid and Caprolactam have been on the uptrend however, due to weak demand follow-up, subsequent price increase in Polyamides has not been realized. Buying activities have slowed down in February representing demand deterioration in the downstream market. Several market participants have reported a strong wait and see (conservative) approach as downstream buyers limited procurements.
Feedstock adipic acid has gained more than 2% in February while Caprolactam prices have risen by approximately 2% during the 2nd month of 2022. Producers have claimed increased upstream costs and the overall increase in cost of production as key factors behind the bullish rally of feedstock prices.
As per ChemAnalyst, “Polyamide market is expected to uptrend on a strong bullish rally in a short term given the continuous rise in feedstock values and expected increase in production from the downstream automotive industry. Prices of crude oil have been chaotic in the last week of February which is likely to pressure downstream value chains specifically olefins and aromatics. Polyamides which rely heavily on Benzene as upstream may further face upward pressure.”