Ripple Effect: Rising Raw Material Costs Drive Up Polyamide Prices Across Europe in the latter half of Feb 2024
Ripple Effect: Rising Raw Material Costs Drive Up Polyamide Prices Across Europe in the latter half of Feb 2024

Ripple Effect: Rising Raw Material Costs Drive Up Polyamide Prices Across Europe in the latter half of Feb 2024

  • 04-Mar-2024 3:15 PM
  • Journalist: Peter Schmidt

In the second half of February 2024, the price of Polyamide stable to moderate, showing a narrow range with slight improvements. This marginal improvement in the Polyamide prices was attributed to higher benzene prices and reduced imports, which supported the price, increasing it by approximately 1% at the second half of February according to ChemAnalyst pricing data. However, despite this price support, the demand for Polyamide from downstream industries remained weak in the European market.

In early February 2024, the European Polyamide markets showed a lack of price traction. Suppliers encountered significant challenges in trying to raise prices, a situation exacerbated by the overall low activity across most downstream markets including construction, consumer goods, and other relevant sector. This trend is particularly evident for accounts that had previously benefited from lower-priced imports, as they are now experiencing price hikes for Polyamide. These price adjustments are also driven by the increasing costs of raw materials, particularly benzene, in the European market.

The demand for Polyamide from the downstream construction industry remained bearish, and Eurozone manufacturers continued to reduce their inventories midway through the first quarter of 2024. The attacks carried out by the Houthis on commercial vessels in the Red Sea have caused a temporary impact on shipping and logistics. In February, supply deliveries continued to be disrupted, leading to an increase in input prices some of the products. These disruptions were primarily attributed to tensions in the Red Sea. Other factors, such as movements in commodity prices like the recent rise in oil prices have also played a significant role.

The complications stemming from delayed shipments and escalated freight rates were imposing additional costs for importing Polyamide, posing risk for buyers. As a result, some buyers turned to domestic suppliers to meet their needs. This shift was driven by a desire to mitigate the uncertainties and financial burdens associated with international shipping. Domestic suppliers, in turn, faced increased demand and had to ensure they could ramp up production to meet these new requirements.

There are indications of recovery and adaptation, but the European polyamide market is still facing difficulties as a result of the Middle East crisis and its effects on imports. Within the constraints of the present market dynamics, suppliers are strategically using the circumstance to offset past losses. Furthermore, industrial activities are being significantly impacted by high inflation and interest rates. Additionally, the demand for Polyamide in the construction sector is facing challenging conditions in the European region.

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