Declining Raw Material Costs and Weak Downstream Demand Drive Down Polyamide 6 Prices in the USA
- 17-Apr-2023 2:41 PM
- Journalist: Henry Locke
The price of Polyamide 6 has continued to decline since March 2023 due to the weak demand from the downstream textile industry and lower feedstock Benzene costs. The Polyamide 6 price decline is anticipated to continue in April 2023, given the extended market and the lower benzene contract.
In March 2023, small business optimism in the US declined, and they are currently dealing with various issues, such as trouble filling open positions with competent candidates, inflation, and supply chain interruptions. The US market's deteriorating economic conditions led to a decline in new commodities orders and a decline in Polyamide 6 usage in the textile industry. The manufacturing PMI declined in March compared to the prior month, signaling a decline in the US manufacturing industry.
March saw a notable slowdown in inflation as a result of falling gas costs, which relieved many American consumers and offered some evidence that the US Federal Reserve's campaign to raise interest rates and cool the economy to grow.
On the other hand, the contract for the related product Polyamide 6.6 trended downward. Low demand in this market segment and declining feedstock costs are likely to result in lower prices in April 2023.
According to the ChemAnalyst price monitoring team, the cost of the Polyamide 6 hovered around USD 3550/MT on a DEL US Gulf with a weekly depreciation of 1.3% on 07th April 2023.
It is expected that the market value for Polyamide 6 is likely to decline in the upcoming weeks due to the poor demand from the end-users and low prices of Benzene. Further, Polyamide 6 prices are anticipated to decline by 1% to 2% in April 2023. The market participants say two things. First, OPEC+ unexpectedly chose to reduce production, which undoubtedly caused the price of crude oil to soar. Second, the impending storm season may prompt converters to begin hoarding in the upcoming months.