Spiked Polyamide Prices in the US market: A cause of Inflation
- 13-May-2022 8:00 PM
- Journalist: Xiang Hong
Texas, US: Skyrocketing crude prices globally are causing inflation in the USA market. Since Russia invaded Ukraine and western countries slapped sanctions against the Russian government, Natural gas prices in the US have witnessed a considerable rise owing to increased European dependency on the USA.
The volatility in upstream Natural gas prices, shrugging off the distress of global economic growth as the impending European Union agreement on Russian oil prices raised the prospect of compressed supply. This has led to a boost in refining activity across the globe, increasing the demand for product tankers and surging the freight charges, thus aggravating the inflation rate.
The Biden administration seeks to keep control of Congress in the polls. Still, the rising feedstock of Natural gas and benzene has dented their political aspiration as the soaring inflation rate has caused severe hardships for Americans.
These soaring Caprolactam prices have affected the Polyamide market in the US region, growing drastically. Rates remain volatile, with the International Energy Agency predicting that global refining activities will surge by 4.4 million b/d from April to August this year, supporting the escalating trend of Polyamide.
Plastic Polyamide finds numerous uses in the automotive sector, including airbags, automotive floorings, lubricants, etc. The ongoing Russian-Ukraine war constrained the ship's movement and caused a shortage of semiconductor chips, thus affecting the demand of automotive enterprises. Higher energy prices support those for fertilizer, and the distributing costs have been overblown, with demand concerns on signs of a disrupting global economy capping the price rise.
While the price for Polyamide trends among the major-volume commodity and engineering resins have continued to be heterogeneous, all have been impacted by the significant spike in global prices of Benzene and derivatives, exacerbated by the significant uncertainty resulting from Russia's war on Ukraine.
As per Chem Analyst the prices of Caprolactam were hovering around USD 2380/ton Caprolactam FOB Texas on May 6, which has been recorded to be the highest this year in the USA which in turn is spiking the price of Polyamide-6. The recovery in commercial construction supports the demand for nylon used to make carpet fibre. Pandemic was also a reason for increasing prices of Polyamide, which paralyzed the economy and plunged a record-shattering annual rate with demand and supplies down, and costs jumped. And companies passed along these higher costs to consumers, which drastically affected the downstream automotive and textile industry.