Demand is picking up faster than anticipated in Europe amid heightened uncertainty over a rising second wave of infections.
Nylons are seeing a shortage of supply in Europe as demand spikes across most market segments in October.
PA6 and PA66 demand suffered a big hit during the pandemic.
And producers up until recently have reportedly been reducing operating rates and doing maintenance along the value chain in order to balance the market.
But in October, demand has increased faster than expected and is causing some shortages.
This upward momentum in activity has been building up since September.
It seems that suppliers cannot rump up production fast enough to meet the sudden jump in demand and are urging buyers to book volumes early.
PA66 is more balanced than PA6 at the moment. And as a result, sellers are already asking for higher prices.
Demand has increased for both grades also in the automotive sector.
The auto sector has been the worst-hit market and is the most important market for PA resins, especially PA66.
However, while demand is increasing, downside risks have not gone away.
The current rise in infections across Europe are increasing the chances of another round of disruptions.
Nevertheless, October is shaping up to be a good month for all players in the PA6 and PA66 market in Europe.