London (GC Intelligence) — PA66 and PA6 experienced another month of price decreases. And once again the markets were weaker than anticipated. But some downstream sectors have been more resilient to the slowdown in economic growth. However, the weakness in most downstream segments, especially the auto industry, has continued to weigh on prices.
PA66 prices decreased €130/mt for both GF30 and Natural grades in July. PA66 prices can vary depending on volumes. The price changes can also differ if players base negotiations more on costs or fundamentals.
Since the beginning of the year, prices have been coming down from their peak. Prices had spiked as demand was strong and production issues tightened supply. The situation started reversing since the beginning of the year and has gathered pace in Q3.
But the PA66 price decreases so far this year compared with other polymers have been small. This may be due to the upcoming lengthy shutdown of the only adiponitrile (ADN) plant in Europe in September. There are worries that if the shutdown causes disruptions then supply could become very short. As PA66 is structurally tight, buyers have been likely focusing on securing supplies.
With regard to PA6, prices are also falling and were assessed down €55/mt for GF30 and €60/mt for Natural. There is plenty of availability of PA6 in Europe due to overcapacity and low demand. As activity slows for the summer, the current weakness in PA resins should persist.