With limited availability to the demand, Polyamide prices remains firm in Germany
- 29-Mar-2022 5:09 PM
- Journalist: Peter Schmidt
The Polyamide market in the European region remains healthy regardless of sluggish demand from the downstream automotive and other key industries. Polyamide prices have been robust since the beginning of the year, and the trend is likely to continue into Q2 2022. Polyamide is widely used in the packaging and automotive industry.
Last week, in Germany, Polyamide 6 prices were assessed at USD 3950 per MT, while Polyamide 66 prices were settled at USD 5470 per MT on a DDP basis. Several market participants have reported a rollover in prices from the last month with minimum fluctuation on a weekly basis. Meanwhile, feedstock prices have been firm owing to a strong rally in Brent crude oil price in the European region.
The automotive industry in Europe continues to face one challenge after the other. The production issues due to the semiconductor shortage haven’t been cleared yet. Meanwhile, wire harnesses have come under the scanner since the Ukraine-Russia conflict, where Ukraine produces one-third of the harness in the European region.
Several processors have reported a decline in production due to the declining demand from downstream industries. Order and queries have been severely curtailed in the backdrop of upheaval in Europe. Hence, material availability has been limited to the demand in the European market. This has maintained the balance in market dynamics, and consequently, prices have remained stable, observing limited fluctuations. Inventory levels have been weak, and there is no news of significant gain in inventories throughout Europe in the last few weeks.
As per ChemAnalyst, “Polyamide prices are expected to remain firm in the coming quarter as there is limited scope for demand improvement from the downstream automotive sector. Several processors have indicated that a decline in operating rates is likely to remain put in the coming weeks. A producer has also reported a shutdown of Polyamide 66 unit in Germany.”