Nylon Engineering Resins (PA6/PA66)
GC Intelligence (London) — PA66 supply in Europe has clearly improved at the beginning of 2019. This was reflected in a price rollover as opposed to an increase. PA66 has been tight for quite some time. Several production issues of intermediary products caused severe disruptions. The market had reached a crisis point when almost all suppliers placed customers on sales controls or declared force majeure. In addition, the low water levels of the river Rhine exacerbated the situation. At one point, suppliers had to turn away new business. However, the recent ease in production issues, the increase in water levels and low demand all helped to increase availability in December and January. PA66 supply in Europe while not oversupplied is in a much better shape than it has been even a few months ago and especially during the first half of 2018. However, there were reports of more production issues in the US that could eventually impact the European market. The PA66 market is structurally tight and will remain very sensitive to any supply glitches. Therefore, the three-month planned shutdown of Butachimie, the only supplier of the key feedstock adiponitrile (ADN) in Europe, understood to have been postponed to Q3, will likely keep the market tight in the second half of 2019. This is reflected in the prices forecast.
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