For the Quarter Ending March 2024
North America
Nylon Tire Yarn (NTY) showed a bearish trend in the first quarter of 2024 on the back of subdued demand as the inventory pressures remained low for the stocking throughout the quarter. Supply largely remained dependent on Canada which had severe downturns due to strikes and cold winter. Nylon Tire Yarn producers revealed improved processing margins shrank further due to weakness in caprolactam prices with US markets being severely stocked with caprolactam.
Tire markets in US currently are oversupplied with unsold car inventories in the primary market continues to increase as interest rates on car remained high, though substantial discounts continue to provide sufficient demand to keep production up. Inquiry with a major NTY producer revealed that prices are expected to remain subdued in domestic market of USA for some time as oversupply from Canadian suppliers continue to revise their contract prices downwards due to weakness. Secondary car market and replacement tire market are also subdued as insurance costs and refinancing costs have remained high, which is further leading to declining demand.
Overall, prices have fallen by 18% Q-o-Q basis in 2024, with caprolactam prices being revised further down by 9%. In the given climate, when WTI and Canadian prices have escalated significantly, the downturn in NTY supply to persist for another quarter.
Asia Pacific
Nylon Tyre Yarn (NTY) showed a mixed trend in the first quarter of 2024. In January, the prices remained bullish trend in Asian markets especially in the Indian markets primary on the back of rising demand from the end use automobile industries. Inquiries with the market participants revealed that demand side remained strong due to inventory pressures.
In Asian markets, demand factor remained positive despite weakening global economy and slower Chinese recovery. Nylon Tyre Yarn producers revealed improved processing margins declined due to rising spot prices of raw materials. In February and March, prices turned bearish due to subduction in demand amidst high inventory stocks and falling demand from replacement tire markets. Feedstock and energy prices also began their bullish trend due to rising energy and crude oil prices.
Consumer sentiment in Asia Pacific continued to remain bullish although slowing down. Inquires with major NTY supplier revealed that prices are expected to remain stable in domestic market of India for some time before beginning its bearish trends as tire markets are currently undersupplied with rural demand picking up later in APAC.
Europe
Nylon Tire Yarn (NTY) remained bullish in the first quarter of 2024. In January, the prices remained bullish trend in European markets especially driven by inventory pressures. Nylon Tire Yarn producers undertook price revisions upwards at contract deliveries with prices moving on aggregate level by 15% across the supplier range. This upward movement in contract prices was offset by downward spot movements as downturns intensified. German deliveries from Italy saw reduced quantum for the first two months.
In March, prices were further moving upwards due to strong demand sentiments and easing of downturns in Italian and Dutch manufacturing as newer contract prices for energy and other petrochemical feedstocks deflated significantly in the spot and contract markets. Demand for NTY intensified as replacement tire market began recovery after a warm winter. Market inquiries revealed that spot-contract differential narrowed down to 5-7% across suppliers group with many participants anticipating stronger demand than previously anticipated, though macroeconomic data continues to show high persistence of core-inflation and slower demand pickup.
Overall, European NTY prices have remained bullish owing to recovery in tire markets as gas prices in Europe have been deflated significantly for consumers and recoveries across replacement tire market is seen. Plus, market participants revealed that preference for gas based vehicles increased despite government’s incentives to adopt EV, EV market continued their slowdown in the given quarter.
For the Quarter Ending December 2023
North America
Nylon Tire Yarn (NTY) showed a mixed trend in the fourth quarter of FY23. In October, the prices remained bullish trend in European markets especially driven by strong transport and logistics markets primarily on the back of stable demand from the end use automobile industries. Nylon Tire Yarn producers revealed improved processing margins were observed in the month of October despite moderate sales as feedstock Caprolactam in the markets remained weak.
In November and December, prices turned bearish due to subduction in demand amidst high inventory stocks and falling demand from replacement tire markets. Feedstock and energy prices also began their bullish trend due to rising energy and crude oil prices.
Consumer sentiment in America continued to remain bullish although slowing down at faster pace. Inquiry with a major NTY producer revealed that prices are expected to remain subdued in domestic market of USA for some time before beginning its bullish trends as newer orders continue to fall as winter demand slump and fall in manufacturing index in November and December attests to the falling prices. While other inquiries revealed that Chinese markets gradually continue to reach oversupply situation across the globe despite weakening demand from Europe and America. CFR and CIF quotations to Europe and other regions have turned bullish amidst Suez uncertainty and longer lead times by the end of December 2023.
Asia Pacific
Nylon Tyre Yarn (NTY) showed a mixed trend in the fourth quarter of FY23. In October, the prices remained bullish trend in Asian markets especially in the Indian markets primary on the back of rising demand from the end use automobile industries. Inquiries with the market participants revealed that demand side, especially from the rural sector, remained resilient in the given timeframe. In Asian markets, demand factor remained positive despite weakening global economy and slower Chinese recovery. Nylon Tyre Yarn producers revealed improved processing margins were observed in the month of October despite moderate sales as feedstock Caprolactam in the markets remained weak and stable. In November and December, prices turned bearish due to subduction in demand amidst high inventory stocks and falling demand from replacement tire markets. Feedstock and energy prices also began their bullish trend due to rising energy and crude oil prices. Consumer sentiment in Asia Pacific continued to remain bullish although slowing down. Inquiry with a major NTY producer revealed that prices are expected to remain stable in domestic market of India for some time before beginning its bearish trends as newer orders continue to remain stable. While other inquiries revealed that Chinese gradually continue to reach oversupply situation across the globe despite weakening demand from Europe and Americas as inflationary trend and weak output sentiment continue to dominate.
Europe
Nylon Tire Yarn (NTY) showed a mixed trend in the fourth quarter of FY23. In October, the prices remained bullish trend in European markets especially driven by strong transport and logistics markets primarily on the back of stable demand from the end use automobile industries. Nylon Tire Yarn producers revealed improved processing margins were observed in the month of October despite moderate sales as feedstock Caprolactam in the markets remained weak and stable. In November and December, prices turned bearish due to subduction in demand amidst high inventory stocks and falling demand from replacement tire markets. Feedstock and energy prices also began their bullish trend due to rising energy and crude oil prices. Consumer sentiment in Europe continued to remain subdued although further slowing down. Festive demand in Q4 remained lower than expectations in Europe amidst high interest rates. European markets are facing subdued replacement tire markets largely owing to high fuel charges and seasonal challenges. While other inquiries revealed that Chinese markets gradually continue to reach oversupply situation across the globe despite weakening demand from Europe and America. CFR and CIF quotations to Europe and other regions have turned bullish amidst Suez uncertainty and longer lead times by the end of December 2023.
For the Quarter Ending September 2023
North America
Prices of Nylon Tyre Yarn (NTY) continue to be observed mixed sentiment in the third quarter in FY23. In July, prices declined on the back of inflated energy prices and weak demand. Chemical and processing margins continued to deteriorate in the month. release of excess supply in North American and subsequently in the global market were being undertaken in the month of August and September, demand continued to remain stable and gradually improve with inventories continued to be high and with inflated prices. Passenger EV continue to generate positive demand for tyre and subsequently NTY value chain in the market as US continue to reduce their import dependence on China. In the months of August and September, rising feedstock and energy prices continued forcing major producers of NTY to reduce operating rates worsening the processing and chemical margins. Prices are expected to show a gradually bullish trend as newer orders continue to marginal improvements while based on the assessment of moderating inflation. Experts argue that imported inflation from goods derived from OPEC+ crude could lead to rising inflation and US Federal Reserve continuing their hawkish stance to moderate demand. IMF forecasts a weak global demand in FY24 with weak consumption and trade environment.
Asia Pacific
Nylon Tyre Yarn (NTY) showed a bullish trend in the third quarter of FY23. In July, the prices began their bullish trend in Asian markets especially in the Indian markets primary on the back of rising demand from the end use automobile industries. Inquiries with the market participants revealed that demand side, especially from the rural sector, saw improvement as the agricultural revenues previously showed a significant improvement. In Asian markets, demand factor remained positive despite weakening global economy and slower Chinese recovery. Nylon Tyre Yarn producers revealed improved processing margins were observed in the month of July despite moderate sales as feedstock Caprolactam in the markets remained weak and stable. In August and September, demand continued to remain stable despite weaker monsoon in Asia. Inquiries revealed that despite weak monsoon, consumer sentiments remained bullish both from rural and urban regions especially in India while processing margins declined, sales revenues in Asian markets remained positive M-o-M basis. Feedstock and energy prices also began their bullish trend due to rising energy and crude oil prices. Consumer sentiment in Asia Pacific continued to remain bullish although slowing down. Inquiry with a major NTY producer revealed that prices are expected to remain stable in domestic market of India for some time before beginning its bearish trends as newer orders continue to remain stable. While other inquiries revealed that Chinese gradually continue to reach oversupply situation across the globe despite weakening demand from Europe and Americas as inflationary trend and weak output sentiment continue to dominate.
Europe
Prices of Nylon Tyre Yarn (NTY) continue to observe their bullish trend in the third quarter in FY23. In July, prices largely remained stable on the back of inflated energy prices and weak demand. Chemical and processing margins continued to deteriorate in the month. Demand continued to remain stable but weak as inventories continued to be high and with inflated prices. Passenger EV continue to generate positive demand for tyre and subsequently NTY value chain in the market as EU continue to reduce their import dependence on China. In the months of August and September, rising feedstock and energy prices continued forcing major producers of NTY to reduce operating rates worsening the processing and chemical margins. Performance in EV and Passenger vehicles continue to remain stable and positive while overall demand showed improvement from Eurozone. Europe’s demand to import continues to decline as large supply of feedstock Polyamide-6 turned domestic due to expansions undertaken by major producers is continued to be taken. Carbon Border Adjustment Mechanism of EU, now being implemented, is further expected to reduce their import propensity of Asian made goods, experts argue. Prices are expected to continue their bullish trend as unsold inventory stocks of high cost differentials continue are further expected to be released in the market despite weakened global and European demand in Q4 FY23.
For the Quarter Ending June 2023
North America
In Q2 2023, the US Nylon Tire Yarn market experienced stable feedstock prices due to steady upstream market fundamentals of caprolactam and adipic acid. However, the demand landscape was influenced by notable changes in the automotive industry. Meanwhile, the tire industry's performance remained robust on the back of firm demand from OEM tires and stable consumption from replacement tires. According to the National Automotive Dealers Association (NADA), there was a significant increase in the market share of battery electric cars, rising from 9.6% to 13.8% in May. Additionally, hybrid electric cars emerged as the second-most popular choice, accounting for nearly a quarter of new car purchases. Despite these shifts, petrol cars retained the largest share at 36.5%. These market dynamics pushed the consumption of OEM tires in the US market. After Q2 2023 ended, Nylon Tire yarn prices in the US were assessed at USD 3800 per MT on a FOB basis.
APAC
In Q2 2023, the Indian Nylon Tire Yarn (NTY) market witnessed a bearish trend, primarily influenced by challenges faced by the automobile industry. The weaker demand and excessive inventory in the automobile sector resulted in decreased demand for Nylon Tire Yarn, leading to a significant drop in prices during May 2023. The market situation was characterized by moderate supply, as there was ample availability of inventories. Additionally, imports saw declining prices, contributing to the supply dynamics in the market. Demand from the downstream conveyor belt and hoses segment remained stable, with limited new queries and stable procurements observed in May 2023. However, consumption rates from the textile industry remained consistent. Currency fluctuation also played a role, with the Indian Rupee depreciating by 1.15% against the USD in May 2023, potentially impacting the overall market dynamics. Overall, the bearish market conditions, coupled with challenges in the automobile industry, called for cautious strategies from market participants. After the conclusion of Q2 2023, Nylon Tire Yarn prices in Asia were assessed at USD 2555 per MT on CFR basis.
Europe
In Q2 2023, the European Nylon Tire Yarn market encountered significant challenges due to weak market fundamentals upstream, resulting in lackluster Nylon prices. The demand for Nylon Tire Yarn, a critical component in tire manufacturing, was dampened by negative evolution across all segments of the European tire industry. As reported by the European Tyre and Rubber Manufacturers' Association (ETRMA), the replacement tyre figures showed a sharp decline compared to the same period in the previous year. The negative evolution in the tyre industry was attributed to multiple factors, including global economic insecurity, rising costs along the value chain, widespread inflation, and concerns over the global economic situation. Additionally, the ongoing war in Ukraine contributed to increased energy costs, further impacting market dynamics. Consumer replacement tyres witnessed a 12% drop in sales, while the truck and bus segment experienced a significant decline of 28%, and the replacement agricultural tyres segment faced a substantial 34% decrease. After Q2 2023 ended, Nylon Tire yarn prices in Europe were assessed at USD 3655 per MT on an FD basis.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Nylon Tire Yarn market showcased mixed feelings, which was facilitated by shifting dynamics of supply and demand. Nylon Tyre Yarn costs increased in January, then remained steady in February. However, prices began to decline as the quarter's end drew near. The automobile sector began to recover as soon as the supply of semiconductors began to improve, but it was badly hurt by the economic turmoil caused by the failure of two significant US banks. Due to the hard effects of the recession, the automotive sector used less Nylon Tyre Yarn, which eventually resulted in a decrease in its price.
APAC
During the first quarter of 2023, the Asia-Pacific region's prices for Nylon Tire Yarn continuously increased thanks to growing downstream demand. The automobile sector had a market upswing that led to an increase in Nylon Tire Yarn purchases as soon as the first quarter of the year got underway. A substantial rise in the industrial output and sales of the automotive industry was the reason for the observed surge. At first, Nylon Tire Yarn's rebound was swift as it tried to make up for its losses from the previous year. However, the growth of Nylon Tire Yarn slowed down as the quarter approached the end; however, the market momentum remained optimistic throughout the quarter.
Europe
Europe's Nylon Tire Yarn market displayed conflicting feelings. Prior to a significant price increase in March, the cost of Nylon Tire Yarns had been declining for the first two months of the quarter. Prices for Nylon Tire Yarn rose in March as China's market began to open more. This rise was made possible by an increase in the availability of semiconductors. As the production of automobiles increased, so did the demand for Nylon Tire Yarns in the automotive sector. Additionally, owing to the under-supplied automotive demand in the European market, which increased auto sales, Nylon Tire Yarn inquiries rose throughout the quarter.
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.
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.
For the Quarter Ending December 2020
Asia-Pacific (APAC)
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.
North America
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.
Europe
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.
