For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Polyimide market faced a challenging and largely bearish environment. Prices continued their downward trend due to ongoing weaknesses in demand, particularly from the automotive industry. Economic uncertainties and rising interest rates have significantly undermined consumer confidence, leading to reduced transactions in the automotive sector. This decline has been especially notable in the electric vehicle (EV) segment, which heavily depends on Polyimide for various critical components.
The construction industry also struggled to recover, with spending remaining low due to historically high mortgage rates that have curbed the number of potential homebuyers. Despite a modest uptick in overall vehicle sales—7.9 million new vehicles were sold in the first half of 2024, representing a 3% increase from the same period last year—this growth was insufficient to counteract the broader downturn in demand for automotive components. The increased sales failed to make a significant impact on the Polyimide market, which continued to suffer from the weakened consumer sentiment and broader economic challenges.
Overall, the North American Polyimide market's performance in Q2 2024 highlights a period of difficulty, characterized by subdued demand from key sectors and persistent economic headwinds.
APAC
In the second quarter of 2024, the Polyimide market in the APAC region experienced a significant upward trend, marked by a series of influential factors. The surge in prices was primarily driven by robust demand from the automotive and electronics industries, which are heavily reliant on high-performance polymers like Polyimide. This increased demand was further compounded by supply constraints, including production limitations and disruptions at key manufacturing sites. The growing interest in advanced materials and high-performance polymers only intensified the upward pressure on prices, reflecting a market characterized by strong fundamentals and heightened interest.
China, in particular, witnessed the most dramatic price shifts within the region. The market for Polyimide resin powder in China demonstrated a persistent upward trajectory, spurred by seasonal demand spikes and significant government interventions in the construction sector. Measures such as lowering mortgage rates and repurposing unsold apartments for affordable housing have helped stabilize the market, boosting overall economic activity. Additionally, rising automotive sales and strong export demand played crucial roles in driving prices higher, resulting in a notable 9% increase compared to the previous quarter. A detailed comparison of prices between the first and second halves of the quarter revealed a consistent 2% rise, underscoring the ongoing upward momentum.
By the end of the quarter, Polyimide Resin Powder FOB Qingdao in China was priced at USD 20,700 per metric ton. This figure highlights the overall positive pricing environment for Polyimide in the APAC region, driven by strong demand, strategic market interventions, and tight supply conditions. The market's impressive performance reflects a period of notable growth and reinforces the increasing importance of Polyimide in advanced applications across key sectors.
Europe
In the second quarter of 2024, the European Polyimide market demonstrated a notably bullish trend, driven primarily by strong demand from the automotive sector. The market was buoyed by a 4.5% increase in new car registrations, which reached approximately 5.7 million units in the first half of the year. Despite this growth, registration volumes remain significantly below pre-pandemic levels, down by 18%. Key markets within the bloc showed positive yet modest performance, with Spain (+5.9%), Germany (+5.4%), Italy (+5.4%), and France (+2.8%) all reporting growth, according to data from the European Automotive Manufacturers Association. However, the construction sector presented a stark contrast, with demand conditions remaining weak and contributing to a challenging environment for Polyimide. The European construction industry continued to grapple with a severe downturn throughout the second quarter. Reports indicated that construction activities were hampered by a decline in permits and reduced foreign investments, leading to lower workloads. The availability of subcontractors improved slightly as procurement activities remained pessimistic, adding further downward pressure on prices. Overall, while the automotive sector's robust performance supported the European Polyimide market, the persistent struggles within the construction industry created a mixed market landscape. This dichotomy underscored a period of significant opportunity and challenge within the European Polyimide market during Q2 2024.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Polyimide market in North America witnessed a significant upward trend, primarily driven by increased demand from downstream sectors, notably electronics and automotive industries. The strong demand for Polyimide-based products like flexible printed circuit boards, aircraft components, and automotive parts played a pivotal role in driving the overall price surge observed during the quarter.
However, amidst this rising demand, supply limitations emerged as a notable challenge. The tightening availability of Polyimide raw materials, particularly aromatic dianhydrides and diamines, strained market access and contributed significantly to the upward price momentum. Petrochemical refineries and chemical synthesis plants encountered difficulties in meeting the growing demand for Polyimide feedstocks, further complicating supply dynamics.
The intersection of escalating demand and supply constraints highlights the complexities inherent in the Polyimide market landscape. Overall, the North American Polyimide market encountered challenges such as supply restrictions amidst heightened demand, increased production costs, and tight supply of feedstocks during the first quarter. Prices in the US market remained elevated in Q1 2024 compared to the previous quarter.
APAC
During the first quarter of 2024, the Polyimide price trend in the APAC region consistently showed an upward trajectory. This upward movement was influenced by a combination of factors impacting both supply and demand dynamics. Supply constraints led to a tightening of available Polyimide in the market, while strong demand persisted across various sectors, notably the non-manufacturing and automotive industries. Despite challenges such as declining exports and uncertainties in the property sector, the Polyimide market in China demonstrated resilience, underscoring its importance across diverse industrial applications. The tightening of supplies observed during Q1 2024 contributed to the overall rise in Polyimide prices in the APAC region. Despite continuous efforts to bolster macroeconomic policies and stimulate economic growth, the supply of Polyimide failed to match the escalating demand from both domestic and international markets. Demand for Polyimide in the APAC region remained robust throughout the quarter, buoyed by factors such as sustained growth in vehicle sales, particularly in the segment of new energy vehicles (NEVs). In conclusion, the price of Polyimide Resin Powder in China remained strong during the period, with the price reaching USD 19650/MT in the last month of the quarter.
Europe
Throughout the first quarter of 2024, the Polyimide price trend in the European region displayed a consistent upward trajectory, driven by a combination of factors influencing both supply and demand dynamics. Initially, prices experienced rapid escalation in the early phase of the quarter, followed by a gradual surge in the last phase. This pattern can be attributed to the interplay between fluctuating supply conditions and evolving demand dynamics within the market. The heightened demand from the Automotive industry, coupled with constrained Polyimide supply, played a pivotal role in driving the overall upward trend in prices. The automotive sector's reliance on Polyimide for various applications, such as wire harnesses and sensor protection, intensified competition for available Polyimide resources. Among European nations, Germany emerged as a focal point for significant price escalation, driven particularly by robust demand in the Medical industrial devices manufacturing and Automotive segments. The flourished demand from these sectors further exacerbated supply constraints, leading to heightened price pressures. Overall, the Polyimide prices remained on an upward trajectory throughout the first quarter in Europe. In Germany specifically, the prices of Polyimide witnessed a notable increase compared to the previous quarter.
