The pick up in demand was not strong enough to support increases.
Nylon (PA) engineering resins prices rolled over from August to September.
According to GC Intelligence price assessments, both PA6 and PA66 resins remained unchanged from the previous month.
But some sellers were aiming to increase prices from the current lows. It is understood that most producers had announced price increases.
However, demand was not strong enough to support any increases in September.
In the past few weeks, demand has picked up with a rebound in activity from most sectors.
And at the same time lower operating rates and turnarounds along the value chain helped to balance the market.
But this was not enough to recover the lost ground during the ongoing pandemic.
Some of the most affected market segments, namely automotive and industrial, continue to struggle.
While there has been a clear improvement in September even in the weakest markets, volumes remain far below pre-pandemic levels.
Another plausible reason why price failed to find support in the face of good demand and a balanced market is to do with competition among suppliers.
It is possible that suppliers are fighting to satisfy the rebound in demand in September. And this competition is preventing increases.
However, what has become clear in September is that the downward trend on prices has ended.
But with rising coronavirus infections across Europe, downside risks persist for PA6 and PA66 prices.