For the Quarter Ending December 2022
North America
Amidst sluggish downstream demand and lower upstream costs, the price of Nylon Tire Yarn (NTY) in the North American market continuously decreased during the fourth quarter of 2022. As the downstream tire and automotive sectors underperformed in terms of industrial output and market performance throughout the quarter, declining demand resulted in a fall in the NTY prices. Due to deteriorating energy prices over the quarter, Nylon Tire Yarn production costs also decreased, which ultimately led to a drop in the market prices of the product. Manufacturers' increased focus on clearing their shelves, even at a lower price, as current supplies were destocked in December, further contributed to the price fall of nylon tire yarn.
APAC
The price of Nylon Tire Yarn (NTY) in the Asia-Pacific Region steadily declined during the fourth quarter of 2022 due to weak downstream demand and lower upstream costs. The demand for Nylon Tire Yarn decreased as the downstream tire, and automotive industries underperformed in terms of industrial output and market performance throughout the quarter, which led to falling NTY pricing. Throughout the period under consideration, the cost of making Nylon Tire Yarn also dropped due to falling energy prices, which ultimately resulted in a decline in the product's market prices. Nylon Tire Yarn's price decline was further reinforced by manufacturers' increased attention to clearing off their shelves, even at a lower price, as the destocking of existing supplies took place in December.
Europe
The price of Nylon Tire Yarn (NTY) in the European market declined steadily throughout the fourth quarter of 2022 due to weak downstream demand and lower upstream expenses. Declining Nylon Tire Yarn demand led to a drop in the NTY prices as the downstream tire and automotive sectors underperformed in terms of industrial output and market performance during the quarter. The production costs of Nylon Tire Yarn also reduced as energy prices declined over time, which finally resulted in a decrease in the product's market value. Imports from the Asian market remained cheap into the European market as freight charges fell drastically during the last quarter.
For the Quarter Ending September 2022
North America
Nylon Tire Yarn (NTY) prices decreased consistently in the North American market throughout the third quarter of 2022 owing to an excessive supply, overflowing inventories, and insufficient downstream demand. The price of Nylon Tire Yarn (NTY) decreased in the domestic market due to better material availability in the market during the quarter, which was made possible by strong industrial operating rates coupled with a decreased price value of feedstock Nylon which eventually reduced the cost of production. Besides, Nylon Tire Yarn's price decline was further backed by the weak downstream demand from the tire and automobile industries because of the low output and decreased sales of these industries.
APAC
The third quarter of 2022 saw a steady decline in Nylon Tire Yarn (NTY) prices in the Asia Pacific region because of an abundant supply, more than adequate stocks, and insufficient downstream demand. Due to improved material availability during the quarter, which was made possible by high industrial operating rates in exporting nations, an abundance of supply, and overstocked stockpiles, the price of Nylon Tire Yarn (NTY) declined on the domestic market. The weak downstream demand from the tire and automotive industries because of their low output and declining sales further supported the price reduction of Nylon tire yarn (NTY).
Europe
Due to an abundant supply, more than sufficient stocks, and the insufficient downstream demand, Nylon Tire Yarn (NTY) prices in the European market steadily decreased in the third quarter of the year 2022. The price of Nylon Tire Yarn (NTY) decreased on the domestic market due to increased material availability throughout the quarter, which was made possible by strong industrial operating rates in exporting countries, an abundance of supply, and overstocked stocks. The price reduction of Nylon tire yarn was further assisted by the weak downstream demand from the tire and automotive industries because of their low output and dropping sales.
For the Quarter Ending June 2022
North America
Prices for Nylon Tyre Yarn (NTY) increased throughout the second quarter as the automobile industry's demand increased. Light commercial vehicle demand for retread tyres and the increased demand for affordable, cost-effective tyres propelled the market's price trend upward. Additionally, the price of the feedstock Nylon increased along with the prices of caprolactam and adipic acid. Meanwhile, logistical problems and increasing freight costs contributed to the current pattern. Due to persistently high freight costs between Asia and the US East Coast and US West Coast, as well as lengthy transit times, imports from the Asia Pacific region, especially Vietnam and China, continued to be sluggish.
APAC
Nylon Tyre Yarn (NTY) Prices continued to rise during the second quarter due to escalating domestic demand; nevertheless, supply remained insufficient as traders struggled to get the material. The supply chain of the world was in backlog, and there were delays in the delivery of tires all over the world, especially in the shipments from China, as several provinces of China had lockdown restrictions. China's demand for nylon tyre yarn remained robust in the automotive and aviation industries. At the same time, Chinese tire manufacturers were facing high labour costs as they were short-staffed due to the lockdown in several provinces of China. The raw material Caprolactam and adipic acid prices also increased considerably during the quarter.
Europe
In the European market, increased domestic demand caused prices for Nylon Tyre Yarn to keep rising during the second quarter, but the material's supply remained insufficient as traders struggled to obtain it. Tyre manufacturers were observed running their operations at optimal efficiency to meet the country's demand. As a result, the Nylon Tyre Yarn (NTY) price significantly climbed in the domestic region. Furthermore, the feedstock market rose on the back of rising Crude oil prices due to the Russia-Ukraine war. At the same time, high-cost pressure from Nylon feedstock alongside rising Caprolactam and Adipic Acid resulted in increased prices in Q2.
Nylon tire yarn market has been termed as robust during the first quarter on the back of consistent bullish rally in feedstock Nylon. Nylon prices soared in the North American market owing to significant rise in upstream Adipic acid and Caprolactam prices. Firm cost pressure catapulted the Nylon Tire Yarn prices to USD per MT on FOB basis. Meanwhile, demand dynamics remained firm as the consumption levels from downstream tire industry has been healthy. Volume intakes from both replacement tire segment as well as original equipment tire segment has been steady to firm. Hence, Nylon Tire Yarn prices after the conclusion of the first quarter were assessed at USD 3450 per MT on FOB basis.
Nylon market in China continued to witness a declining price trend during the first quarter owing to weak demand dynamics and ample supply. The upstream Adipic Acid has fallen bearish, depressing the already dropping Polyamide prices with abundant supplies. The trading atmosphere in the country was deserted due to extended Covid lockdowns in major cities, including ports. Consequently, downstream Nylon tire yarn market also remained bearish throughout the first quarter. Demand of the material started the quarter on a stable note however demand declined substantially firstly due to spring season holidays and later on due to resurgence in covid cases. Hence as of March 2022, Nylon Tire Yarn prices were assessed at USD 1440 per MT on FOB basis. In the Indian domestic market, Nylon Tire Yarn prices also remain stagnant due to stability in feedstock prices and ample material availability.
Feedstock Nylon prices rose significantly during the first quarter which pressured the downstream Nylon Tire Yarn (NTY) and culminated in substantial jump in NTY prices. Europe has been struggling with inflation in all key markets which has resulted in decline in demand for several key commodities. Since the beginning of the European conflict, crude oil and natural gas prices have been rising consistently putting inflationary pressure on the downstream petrochemical market. Nylon prices have also gained from climbing feedstock Adipic acid and Caprolactam prices. Cost of production has been at record levels and producers have been speculating on shutting the production units in the light of rising prices. Nylon tire yarn market has also seen weak demand from downstream tire industry. Hence, after the conclusion of Q1, Nylon tire yarn prices were assessed at USD 3870 per MT on FD basis.
