Home Latest News & Insights NYLON PRICES CONTINUE TO LACK TRACTION

NYLON PRICES CONTINUE TO LACK TRACTION

February 6, 2024
restructuring

Nylon prices continue to lack traction, despite an ease in pressure from imports and higher costs. PA6 and PA66 resin markets are experiencing ongoing challenges as February progresses. Demand remains weak, likely causing suppliers to focus on seeking sales volumes.

As such price flexibility is becoming apparent, with downward adjustments continuing in some cases, most probably where prices were previously above the average.

However, accounts with prices already at lower market rates face price stability or potential increases.

This is partly due to rising costs of key raw materials, like the notable increase in benzene prices, which saw the contract price spike €214/MT in February.

Suppliers are proceeding with caution, wary of further eroding their margins due to the unpredictable nature of feedstock costs.

This cautious strategy illustrates the suppliers’ delicate balance between keeping their operations running by maintaining sales volumes and the pressure to offer price reductions amidst the unpredictable raw material costs.

In conclusion, the market for PA6 and PA66 nylon resins remains weak, primarily due to low demand within Europe.

Although pressure from imports has slightly eased, the main issue is the persistent lack of demand, which continues to dictate pricing trends.

With suppliers operating in a competitive environment, the possibility of margin recovery appears unlikely, underscoring the importance of strategic planning in navigating this complex market scenario.