For the Quarter Ending March 2025
North America
In Q1 2025, North America's Nylon Tire Yarn (NTY) market faced challenges due to economic headwinds and shifts in the tire industry. The prices of the product kept on fluctuating, while producers were taking cautious approach. The U.S. economy experienced a significant slowdown, with some estimates indicating a contraction in GDP during the first quarter. This economic downturn was partly attributed to businesses stockpiling goods ahead of increased tariffs, leading to a record-high goods trade deficit in March.
The tire industry in North America was impacted by these economic conditions, with companies facing uncertainty due to fluctuating demand and increased production costs. While specific tire sales data for Q1 2025 is limited, the broader economic challenges likely influenced the demand for NTY. Despite these obstacles, the NTY market showed resilience, adapting to the evolving economic landscape.
Asia
In Q1 2025, Asia's NTY market experienced moderate price fluctuations, influenced by the region's robust economic performance and tire industry dynamics. Asia, led by India, is projected to contribute about 60% of global growth in 2025, with the region expected to grow by more than 4.2%. This economic strength supported steady demand for NTY, particularly in countries like India and Southeast Asian nations. At the same time, robust growth of China’s tyre industry played an important role in strengthening China Nylon Tyre Yarn market. However, China's economic outlook presents some challenges. While China's economy is expected to grow by 5% in 2025, bolstered by strong stimulus measures, the country faces headwinds from U.S. trade tariffs on its exports, potentially impacting its tire manufacturing sector. Despite these challenges, the overall demand for NTY in Asia remained stable, supported by the region's economic resilience.
Europe
In Q1 2025, Europe's NTY market experienced relative stability, influenced by the region's modest economic growth and tire industry performance. The European Central Bank projects real GDP growth of 1.0% in 2025. This steady economic environment supported consistent demand for NTY across the continent. However, during the first quarter of the year, no significant improvement in tyre sales affected the pricing situation of the product.
The tire industry in Europe showed resilience, with companies adapting to changing market conditions. While specific tire sales data for Q1 2025 is limited, the overall industrial activity and manufacturing sector maintained a steady demand for NTY. Additionally, easing trade tensions, particularly after the U.S. administration signaled plans to reduce automotive tariffs, contributed to a more favorable business environment.
For the Quarter Ending December 2024
North America
In Q4 2024, Nylon Tire Yarn (NTY) prices in the USA remained stable with slight downward pressure as demand softened in line with seasonal trends and weaker automotive activity.
The tyre manufacturing industry, a key consumer of NTY, saw reduced production due to slower vehicle sales in November and December, which is typical during the holiday season. Rising raw material costs, particularly for Caprolactam, and inflationary pressures further impacted the market, making it difficult for manufacturers to pass on higher costs to consumers.
Supply levels remained stable, supported by consistent domestic production and steady import volumes. Seasonal factors such as lower road travel during winter and reduced vehicle maintenance activity also contributed to softer NTY demand. Despite a brief uptick in tyre production in October, driven by pre-winter vehicle servicing demand, the market cooled toward the end of the year. Overall, stable supply, coupled with seasonal and economic challenges, kept NTY prices under slight pressure, with limited prospects for significant recovery in the near term.
APAC
In Q4 2024, Nylon Tire Yarn (NTY) prices in India declined by 6.7% in November, driven by reduced demand from the automotive sector, particularly tyre manufacturing, amidst rising raw material costs and slower tyre production. While vehicle sales showed moderate growth during the wedding season and seasonal purchases, suppressed rural demand and elevated financing costs weighed heavily on NTY consumption. Imports dominated the supply landscape, with low-cost Russian shipments creating a supply glut and higher-priced Chinese imports intensifying competition for domestic producers already burdened by high Caprolactam costs. Despite stable supply levels supported by inventory build-ups, weak demand from four-wheeler manufacturers, slower rural consumption, and misaligned production-consumption trends led to inventory surpluses. Two-wheeler sales provided slight resilience, but overall demand remained subdued, reflecting broader economic pressures and elevated costs. The market outlook remains bearish, with limited recovery prospects as high financing costs and competition from imports continue to pressure prices and margins for Indian manufacturers. The outlook remains bearish, with stable to declining prices expected in the near term.
Europe
In Q4 2024, Nylon Tire Yarn (NTY) prices in Europe experienced slight downward pressure, reflecting seasonal trends and subdued demand from the tyre and automotive sectors. October saw a modest boost in tyre production due to pre-winter preparations and increased vehicle servicing, but this momentum tapered off in November and December as vehicle sales declined and consumer spending focused on holiday-related expenses. The tyre industry also faced challenges from rising raw material costs, particularly for Caprolactam, and inflation-driven price sensitivity, which constrained purchasing activity. Supply levels remained stable, supported by imports from Asia and domestic production, while logistical improvements in European ports ensured consistent material availability. However, demand was tempered by reduced automotive manufacturing activity, which slowed further in December due to lower export orders and weaker domestic sales. Seasonal factors, including lower winter driving activity, further suppressed NTY consumption. The market ended the year with stable but slightly pressured prices, driven by weak demand and rising costs, with limited recovery expected in the near term.
For the Quarter Ending September 2024
North America
In Q3 2024, the Nylon Tire Yarn (NTY) market in North America showed a mixed trend, driven by several key factors. Supply chain disruptions caused by plant shutdowns induced by hurricanes, coupled with rising import volumes and weakened demand, led to a general downward trajectory. High production across the region created an oversupply situation, pushing inventory levels higher and exerting significant downward pressure on the market. The combination of these factors contributed to a persistently challenging environment throughout the quarter.
In the U.S., the market mirrored this broader regional trend. Supply disruptions and Hurricane Francine, together with seasonal fluctuations, further amplified the difficulties facing the market. Global market dynamics also played a critical role, making conditions more volatile and unpredictable. The reduced downstream production capacities, alongside softened demand, exacerbated the downward pressures seen in the NTY sector, with the U.S. particularly impacted.
Overall, the NTY market in North America continued to experience downward pressure throughout the quarter. Seasonal fluctuations, coupled with global supply chain issues, reinforced the negative trend. Despite occasional fluctuations, the general sentiment remained weak, shaped by supply-side challenges and reduced demand across the region
Asia Pacific
In Q3 2024, the Nylon Tire Yarn (NTY) market across the APAC region experienced a mixed trend in prices, driven by multiple key factors. Supply chain disruptions caused by plant shutdowns, combined with an influx of imports and weakened demand, contributed to the downward trend. Reduced production capacities led to an oversupply, pushing inventory levels higher and further intensifying the price drop. These supply-side issues, along with the softened demand, created sustained downward pressure on pricing throughout the quarter. In India, in particular, notable price reductions were observed, reflecting the broader negative trend across the region. Seasonal fluctuations and the influence of global market conditions also played a crucial role in shaping the market dynamics, resulting in a marked increase in prices compared to the same period last year. The decline for the price assessed in September 2024 were 3.5% higher than previous year. Prices declined by 1.2% from the previous quarter, highlighting the ongoing downward trajectory. The prices bottomed out in August due to higher freight costs for APAC suppliers while gained back again in September.
Europe
In Q3 2024, the Nylon Tire Yarn (NTY) market in Europe experienced a mixed trend, influenced by a combination of key factors. Supply chain disruptions due to plant shutdowns, coupled with an influx of imports and reduced demand, set the stage for a downward market trajectory. High production led to an oversupply, pushing inventory levels higher, which added to the downward pressure on market activity. This oversupply, combined with softened demand, intensified the negative trend across the region throughout the quarter. Germany, in particular, saw a notable reflection of this broader negative market shift. Supply disruptions, coupled with seasonal fluctuations, exacerbated the existing challenges. The influence of global market dynamics further compounded these issues, making the market more volatile. With weakened production capacity and demand, the country faced increasingly difficult conditions, mirroring the overall challenges seen across the European market. Additionally, seasonal factors and global supply chain dynamics contributed to the overall uncertainty. Although market trends fluctuated, the quarter's performance remained on a general downward trajectory, heavily shaped by supply-side issues and the ongoing demand fluctuations. This created a persistently challenging environment for the NTY market across Europe.
For the Quarter Ending June 2024
North America
The second quarter of 2024 for the North American Nylon Tire Yarn (NTY) market has been characterized by a mixed trend driven by a combination of factors. Prominently, rising crude oil prices have cascaded through the supply chain, inflating production costs. Additionally, labor strikes, particularly in railway sectors, have disrupted supply routes, thereby constrained availability and fostering a tighter market. Increased global freight costs have further exacerbated the situation, deterring imports and compelling local suppliers to adjust prices upwards. Moreover, robust demand from tire manufacturers, buoyed by a recovering automotive sector, has enhanced market dynamics.
Focusing on the USA, the market has experienced significant price volatility. Seasonal factors such as increased travel demand during the summer months have inherently bolstered tire sales, thereby escalating the demand for NTY. Concurrently, market sentiment has been influenced by inventory adjustments and speculative buying in anticipation of further supply disruptions. Caprolactam upstream prices largely remained stable although NTY prices surged by the end of the quarter.
A comparative analysis shows that volatility remained largely concentrated in the second half as the markets were supported by high crude prices and improving demand sentiment. The quarter concluded with NTY. Overall, the second quarter of 2024 has seen prices progressively stabilizing after initial fluctuations, setting a firm foundation for subsequent market movements
Asia Pacific
In Q2 2024, the Nylon Tire Yarn (NTY) market in the APAC region experienced a notably bullish trend, driven primarily by rising feedstock costs, supply chain disruptions, and increased demand. The cost hike in caprolactam, a key feedstock influenced by elevated crude and benzene prices, significantly impacted NTY prices. Additionally, geopolitical tensions in the Red Sea and Persian Gulf regions exacerbated freight costs, further inflating prices. Supply constraints were observed as several major producers undertook maintenance shutdowns, including Century Enka and some Chinese and Russian suppliers, which restricted NTY availability. Focusing on India, the country saw the most pronounced price changes within the APAC region. Indian NTY markets displayed a robust increasing sentiment throughout Q2, driven by a resurgence in domestic demand and heightened export activity. The onset of the monsoon season contributed to this volatility, with rural demand for agricultural machinery peaking and then stabilizing. The first half of the quarter witnessed a sharper price increase compared to the latter half, reflecting a 5% difference, as initial supply shortages were gradually mitigated by the end of the quarter. The prices gained cumulatively 4.5%. The quarter culminated in a price of USD 231,100/MT for NTY 840D Ex-Ahmedabad, underscoring the persistent bullish trend. This quarter was marked by significant cost pressures and supply chain disruptions, ultimately leading to a consistent upward price movement for Nylon Tire Yarn in the APAC region.
Europe
In Q2 2024, the European NTY market experienced significant price increases, driven by multiple influential factors. The primary driver was heightened demand, especially from the tire manufacturing sector, which saw a seasonal uptick as automotive production geared up for summer. Additionally, geopolitical tensions and subsequent trade disruptions, particularly affecting supply routes and logistics from Russia, further tightened market availability. Crude oil price inflation also exacerbated cost pressures, leading to higher production and transportation costs for NTY. Focusing on Germany, this quarter witnessed the most pronounced price changes within the region, reflecting an overall bullish sentiment. The replacement tire market's recovery, coupled with a robust industrial production rate and positive economic indicators, has sustained high demand levels. This strong demand was complemented by supply constraints due to geopolitical instability, which created a perfect storm for escalating prices. The price trend within the quarter showed increased due to rising automobile demand. Overall, the pricing environment for NTY in Q2 2024 has been overwhelmingly positive, characterized by strong market demand and constrained supply, leading to sustained upward pressure on prices.
