As the market is stabilising, sellers are looking to increase prices in line with recent cost increases.
Nylon 66 (PA66) prices appear to have reached the bottom with another decrease in August.
European prices of Natural PA66 decreased €30/mt from July to August, according to GC Intelligence market assessments.
In fact, the slow activity of the summer, high inventories and an active spot market all contributed to push prices down.
However, the decreases in August were much lower than observed in the past few months. This suggests that the markets are stabilising.
Demand is slowly improving in line with economic activity. But an ongoing slow auto sector is still preventing a significant rebound.
What is more, multiple market sources suggest that producers have continued to reduce production in order to correct the oversupply. Most are understood to have reduced operating rates and some have even brought forward maintenance.
As market fundamentals are balancing out, sellers are aiming to increase prices in line with the recent increases in costs.
While the market was too weak to absorb an overall price increase in August, a better auto sector could support higher prices in September.