The PA66 market endured yet another major price hike in May as producers continued to suffer production issues. PA66 buyers absorbed hikes of around €300/mt, according to GC Intelligence assessments.
As values have reached extreme highs, expectations are growing that a peak is being reached.
Nonetheless, given the multitude of drivers, it is likely that prices will continue to increase in the next few months.
The supporting factors are too many and will take time to ease. In fact they supply issues continued to accumulate in May. BASF was the latest company declaring FM on its PA compounds.
Costs have also supported prices lately, with crude oil close to $70/bbl and pushing up base chemicals such as benzene. Benzene rose around €370/mt in May.
As there is a time lag for costs to influence PA66 prices, it will take a couple of months for the increases to be passed on downstream.
And with demand showing little sign of easing, it will continue to lend support and fuel the upside or cushion any downside. Demand is expected to remain strong in most sectors for the rest of the year.
Overall, it is possible that the current upward trend in prices will start to run out of steam after overinflated costs come down. Supply issues could also start to abate. However, given the many drivers, the upward trend on PA66 prices will probably continue before eventually easing during the summer.