Polyamide in Europe witness Sharp Increase Despite Average Demand

In the European region, the price of Polyamide has increased in the latter part of April following a period of stability in the preceding weeks. This price increase comes despite the demand for Polyamide being in the average range in the European market. As a ripple effect, the cost of Polyamide 6 and 6.6 rose by 2.5% during the week ending 19th April 2024 on a FOB Hamburg basis.

The Polyamide market in Europe is currently experiencing moderate supply levels, with overseas trade facing challenges due to disruptions in ocean routes. These disruptions have led to uncertainties in the supply chain, impacting the availability of Polyamide in the market. The demand for Polyamide in Europe is described as average, with purchases being carried out on a needy basis, particularly in the downstream textile and automotive sectors.

In addition to fewer shipping delays, the pressure on supply chains was alleviated by a significant reduction in the purchasing of inputs by eurozone manufacturers. This reduction in input purchases indicates a slowdown in production or a more cautious approach to inventory management by manufacturers in the eurozone.

Europe manufacturers of Polyamide grades 6 and 66 globally have seen a rise in activity in the second half of April after a period of stability over the past few weeks. This increase in activity is attributed to the impact of raw material prices, which have been fluctuating upward in recent times. Manufacturers are responding to these changes by adjusting their production levels to meet the current needs of the market.

The rise in manufacturing activity globally highlights the industry's flexibility and adaptability in responding to changing market conditions. Despite the challenges posed by supply chain disruptions and fluctuating raw material prices, manufacturers are working to meet the demand for Polyamide in key sectors such as automotive.

It is anticipated that the pricing of Polyamide in the European region will continue to show strength in the upcoming weeks. This is primarily attributed to the positive developments in the automotive sector, which is a key consumer of Polyamide products. The automotive industry's improvement is likely to drive up demand for Polyamide, leading to a sustained price trend in the region. Despite reporting challenging demand conditions and preferring to maintain lower workforce numbers, manufacturers have signaled improved expectations for future production. This suggests that while current conditions may be difficult, there is optimism regarding future market trends and production levels.