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European PA66 GF30 Prices Decreased €145/mt in June

July 2, 2020
Activity is still rather low and keeping the pressure on prices which continue to adjust from the highs reached when the market was tight.

London (GC Intelligence) — European nylon 66 (PA66) GF30 prices in June decreased in Europe by €145/mt due to weak demand. The market showed little signs of recovery since the latest disruptions from the virus pandemic.

Prices continue to fall from the highs reached in 2018, during a period of extreme market tightness.

While the rate of decrease is set to ease in the next few months as economic activity picks up, downward pressure will likely remain until the end of the year.

The GC Intelligence monthly price assessment for PA66 GF30 in June is €2720/mt DDP.

The decreases in June were not the same for all participants. Some are ahead of others as they have already reached low levels and there is little room to negotiate further decreases. But others were still struggling to reduce prices in line with current trends.

Nylon Prices June Changes

Demand has been very weak since the lock-downs, especially from the auto sector which has ground to a halt. June was probably the worst month from the latest disruptions as most players in the value chain were suffering.

But now that activity is picking up in many European countries, the current pressure should start to ease. While there was little to suggest a recovery in June, the summer should provide a better market environment. Pent up demand will fuel the recovery from the extreme lows. Demand will also pick up as players continue to work down stocks built during lock-downs.

But a rebound is not expected any time soon. Many compounders while expecting better market for the rest of 2020, they think the pressure will remain in place for some time due to the economic fallout.

The rate of decrease in prices will surely ease, but most likely the market will have to wait until 2021 before seeing a price recovery.

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