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.
For the Quarter Ending March 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending December 2021
North America
Nylon Tire Yarn market started the quarter on a strong note where increased pressure from feedstock Nylon and sustained inflationary pressure from downstream industries culminated in robust prices of NTY throughout the quarter. Nylon prices remained on an incessant uptrend throughout the quarter owing to strong upstream prices amid sluggish production rates. On supply side, imports from Asia pacific including Vietnam and China also remained weak due to resolutely high freight charges between Asia and both US West coast and US East Coast along with long transit time. Therefore, prices of Nylon Tire Yarn increased during Q4 in USA and Canada.
APAC
Nylon Tire Yarn prices kept on climbing up during the last quarter due to rising demand from the domestic market while availability remained inadequate as market participants struggled to secure the material. Tire manufacturers were observed running their plants on optimum levels keeping up pace with the demand under the festive season of the country. Therefore, NTY price rose significantly and assessed as INR 264100 per MT 840D Ex-location in October. In China, Nylon tire yarn demand remained firm throughout the quarter as automotive sector along with aviation sector kept consumption levels for NTY strong during the quarter. Production rates improve into the quarter however declined cost pressure from feedstock Nylon resulted in stable prices in Q4.
Europe
European automotive industry remained on a weakened trend as global shortage of semiconductor chips continue to plague automotive industry. However, improved year for aviation industry after sluggish 2020 increased Nylon Tire Yarn intakes in 2021 and consequently, better performed in the last quarter. Meanwhile feedstock Nylon prices soared in the domestic market as NTY faced close competition from textile industry in securing Nylon. This increased the cost pressure over Nylon tire yarn and thus NTY prices remained on an incessant uptrend throughout the quarter.
For the Quarter Ending December 2021
North America
Nylon Tire Yarn market started the quarter on a strong note where increased pressure from feedstock Nylon and sustained inflationary pressure from downstream industries culminated in robust prices of NTY throughout the quarter. Nylon prices remained on an incessant uptrend throughout the quarter owing to strong upstream prices amid sluggish production rates. On supply side, imports from Asia pacific including Vietnam and China also remained weak due to resolutely high freight charges between Asia and both US West coast and US East Coast along with long transit time. Therefore, prices of Nylon Tire Yarn increased during Q4 in USA and Canada.
APAC
Nylon Tire Yarn prices kept on climbing up during the last quarter due to rising demand from the domestic market while availability remained inadequate as market participants struggled to secure the material. Tire manufacturers were observed running their plants on optimum levels keeping up pace with the demand under the festive season of the country. Therefore, NTY price rose significantly and assessed as INR 264100 per MT 840D Ex-location in October. In China, Nylon tire yarn demand remained firm throughout the quarter as automotive sector along with aviation sector kept consumption levels for NTY strong during the quarter. Production rates improve into the quarter however declined cost pressure from feedstock Nylon resulted in stable prices in Q4.
Europe
European automotive industry remained on a weakened trend as global shortage of semiconductor chips continue to plague automotive industry. However, improved year for aviation industry after sluggish 2020 increased Nylon Tire Yarn intakes in 2021 and consequently, better performed in the last quarter. Meanwhile feedstock Nylon prices soared in the domestic market as NTY faced close competition from textile industry in securing Nylon. This increased the cost pressure over Nylon tire yarn and thus NTY prices remained on an incessant uptrend throughout the quarter.
For the Quarter Ending September 2021
North America
The overall NTY market outlook showcased an upward trajectory in the 3rd quarter of 2021 across the North American region. In the wake of economic recovery, a hike in the demand for Nylon Tire Yarn was observed from the downstream automobile sector in the US market during Q3. The supply of Nylon Tire Yarn increased in this quarter whereas raw material costs and limited availability of raw materials resulted in a crippling rate of production. Hence, prices witnessed a major spike during the quarter.
Asia Pacific
In the Asia Pacific region, the domestic market observed a steep rise during the third quarter of 2021 after witnessing mixed sentiments in Q2. In the Indian market, Nylon Tire Yarn prices kept on rising throughout the quarter, supported by stable offtakes from the domestic market, while facing limited availability in the country. NTY (840D) price was last assessed at USD 2960/MT Ex-works Mumbai in the month of September. Delayed shipments and limited imports from China, reduced the availability of NTY in India and led to a significant hike in its prices. A leading manufacturer revealed that currently they are out of stocks, and it will take time to complete further orders.
Europe
The European market witnessed an upward trend in Q3 of 2021 on the back of consistent demand from the downstream sectors. Strong pricing of Caprolactam and Nylon chips continued to affect the prices of NTY during the third quarter hence the prices showcased an upward momentum. In terms of demand, the downstream tire industry picked up but remained pressured due to low automotive production.
For the Quarter Ending June 2021
North America
Nylon Tire Yarn (NTY) supplies in the North American region improved compared to the previous quarter, but the impact of the winter storm Uri curtailed the availability of the upstream Caprolactam significantly which resulted in the low production rates of Nylon throughout the quarter. Overall, the supply outlook in the second quarter remained tight. The Nylon Tire Yarn demand in the North American region was bolstered from the tire industries despite semiconductor chip shortages reducing the overall automobile production. As a ripple effect, the prices remained buoyed throughout the quarter with yearly average estimated around USD 2020 per tonne FOB Hamburg.
Asia Pacific
During the second quarter of 2021, Nylon Tire Yarn supplies in the Asia Pacific region showcased mixed trends as the limited availability of the upstream Caprolactam restricted the production of the feedstock Nylon 6 in the regional domestic market. Whereas the consumption taxes imposed on the imported mixed aromatics commodities and rising inflation rate in the Chinese domestic market exacerbated the tightness in the Nylon Tire Yarn. Offtakes were balanced from the tire industries despite the hampered production levels of the automotive sector. As a ripple effect of the second COVID impact in India subdued the public movement and market activities resulted in a downtrend in the prices of NTY in the Indian domestic market with Ex-Work Mumbai prices were assessed at USD 2165 per tonne in June.
Europe
In the European market, the overall market outlook of Nylon Tire Yarn (NTY) remained affected by planned and unplanned turnarounds in the various nylon 6 facilities throughout the European region caused due to the shortage of feedstock Caprolactam in the regional market. Demand was strong throughout the second quarter as enquiries were consistent from the recovering automotive sector, as the mas vaccination programmes generated optimism in the European markets. NTY prices were pushed upwards amidst the imbalance in the supply-demand gap.
For the Quarter Ending March 2021
North America
During Q1 2021, NTY supplies remained tight amid low inventories level of the key feedstock Caprolactam, as the regional industrial infrastructure collapsed due to the unprecedented extreme freeze weather conditions in the US Gulf region. BASF hiked the prices of Nylon chips by +USD 330 per tonne for the April deliveries which could send ripples to the margins of downstream NTY producers. Downstream demand surged as tire offtakes from the automotive sector started gaining pace towards the end of the first quarter. The supply-demand gap widened with the prices of NTY reaching USD 2020 per tonne on CFR Hamburg basis.
Asia-Pacific (APAC)
The Asian NTY market witnessed constrained supplies during the first quarter, key reasons being tightness in the supply of Caprolactam as the regional inventories diminished amid the Chinese Lunar New Year holidays and several regional plants opting for maintenance turnaround. Demand bolstered throughout the quarter due to surge in enquiries from the recovering automotive sector and tire industries. Further it was observed that spot buyers started to replenish their inventories during the second half of the quarter to cater to post holiday restocking. The prices of NTY in India were assessed around USD 2386 per tonne in March.
Europe
The supplies of NTY in the European market remained tight during the first quarter of 2021, whereas several major plants were operating at reduced capacity amid the shortage in the feedstock Caprolactam due to transportation hiccups and cold temperature conditions in the Northwest European region. Further, overseas shipments from the USA declined due to plant outages. Demand from the tire manufacturing sector surged as the regional automotive sector picked up the pace and started to recover from the losses in previous year.
NTY supplies dropped in Q4, as the shortage in the feedstock Caprolactam enforced the reduction on production rates at nylon polymerization facilities. Some Chinese caprolactam producers curtailed their production levels to an average of 80%, which contributed to tighter availability of nylon chips. Furthermore, overall spot availability of the feedstock decreased in the Asian region followed by unscheduled force majeure heard at some facilities in Europe which restrained exports to Asia. A major north-east Asian NTY producer temporarily shut its facility for around a week as its caprolactam facility went offline in the second half of Q4. Sentiments were risen after the news of extension of anti-dumping duty over Nylon Tyre Cord Fabrics (NTCF) exports from China buzzed the Indian markets. Tracing the demand-supply dynamics, NTY prices in India climbed slowly while maintaining an average price of USD 2478 per MT throughout the fourth quarter.
The demand of NTY remained healthy in the North American region throughout the Q4. An unexpected outage at a major Nylon exporting facility in Antwerp (Belgium) caused significant shortage in the product supply, triggering a potential rise in the NTY prices. Strong recovery in the car OEM (Original Equipment Manufacturer) volumes improved prospects of the US’ tyre producers as almost half of the US NTY demand comes from the tire industry. Ascend Material Co. declared an unplanned turnaround due to the power outage in Florida at its Nylon 6,6 plant which further tightened the upstream supply. Strong end-use demand from the tire sector and tight supplies caused attenuation in rebuilding inventory for distributors triggering a spike in the prices of NTY. The U.S. Tire Manufacturers Association (USTMA) projects U.S. tire shipments will total 298.3 million units by the end of 2020, compared to 332.7 million units in 2019.
An unexpected outage declared by LANXESS at its 220,000 ton/year Nylon 6 facility in Antwerp (Belgium) due to technical issues created feedstock supply shortage. Rise in demand from the downstream sector led to global tightness in supply throughout Q4. It was estimated by many buyers that due to strengthening demand and tightened supply, the cost for Nylon yarns was estimated to rise in upcoming quarter, encouraged early restocking. The NTY prices were largely impacted by the spike in upstream in Russia and buoyant demand from the recovering automotive sector.
