Home Latest News & Insights PA66 Prices Are Heading For A Rollover In September

PA66 Prices Are Heading For A Rollover In September

September 16, 2020
The recovery is gradual and not enough to support increases.

Nylon 66 (PA66) are heading for a rollover in September on the back of a lacklustre pickup in car sales and a struggling industrial sector.

PA66 demand is highly reliant on the auto sector, which represents about 50% of the total. While the sector is picking up, the pace is slow. Many players anticipated that in September the auto industry would bounce back from the low point in June.

But the increases in infections during the summer fuelled a further loss of confidence in the markets and left the most important PA66 market segment lagging behind other sectors.

Meanwhile, more bad news emerged from the recent industrial sector data. The recent industrial production numbers from Eurostat, while showing a monthly gain, remain below last year.

However, total PA66 demand in September is much better than it was in June, even for the auto sector. But the recovery is too slow to support price increases.

What is more, PA66 prices have been coming down from high levels established when the market was very tight. As such, on some accounts prices are still catching up and margins remain relatively healthy.

But margins are not the main concern for PA66 sellers at the moment. Sales volumes are and these remain low, especially compared to other engineering polymers. The pandemic has reduced demand considerably and a full recovery does not look like it will happen any time soon.

It will take a much stronger market to support price increases for PA66 in Europe. And with the current increases in infections, there is a good chance that this might not happen in 2020.