Prices posted smaller price decreases compared to June amid stabilising fundamentals.
Nylon 66 (PA66) prices are still on a downward trend but showed signs that values have reached the bottom in July, according to GC Intelligence market analysis. PA66 buyers are experiencing different price movements, however. Some managed to achieve rollovers, others secured lower prices, but none saw increases. For some, prices are still coming down from the highs reached a couple of years ago.
PA66 prices have been on a downward trend for months after having spiked to record levels in 2018. The pandemic has accelerated the downward trend, pushing some spot values closer to €2000/mt. The rate of decrease in prices also slowed down because suppliers faced with a slowing demand decreased operating rates to ease the oversupply.
While PA66 price weakness remains in place heading into the summer, it appears that the worse has passed and prices have reached the bottom. Participants are expected to negotiate rollovers in August. For now, there are no signs suggesting that prices could start to post increases.
Players see September as a crucial month, which could set the tone for the rest of the year. Demand making small advances, cost increasing and players working down stocks support this scenario. At the same time, the threat of the virus and its impact on the economy will continue to fuel downside risks.