Home Latest News & Insights European PA6 and PA66 Markets in February 2024: Responding to Import Disruptions

European PA6 and PA66 Markets in February 2024: Responding to Import Disruptions

February 15, 2024

European PA6 and PA66 markets: The PA6 (Polyamide 6) and PA66 (Polyamide 66) markets in Europe are experiencing a notable shift as a result of the ongoing Middle East crisis, which has disrupted import activities.

The complications arising from delayed shipments and escalated freight rates are imposing additional costs and risks on buyers, who are increasingly turning towards domestic suppliers for their needs.

This pivot is notably rejuvenating the demand for PA6 and PA66, steering it away from the record lows observed in December and January.

Revival of Demand Amidst Supply Chain Constraints

Historically, the demand for these polymers had plummeted to unprecedented levels, heightening the risks of plant shutdowns and prompting concerns over potential industry consolidation. However, the current reduction in imports is inadvertently bolstering European suppliers, enabling them to elevate prices and recuperate some of their eroded margins. This development is particularly timely, considering the precarious position suppliers found themselves in at the year’s outset.

At the beginning of the month, it was clear that prices in the European PA6 and PA66 markets lacked traction. Suppliers faced significant challenges in attempting to raise prices, a situation compounded by the overall low activity across most downstream markets. Despite these hurdles, there are indications that some price increases are beginning to take hold. This trend is more evident for accounts that previously benefited from lower-priced imports, which are now seeing price hikes in the triple digits.

Raw Material Costs Bolstering Price Increase Justifications

The justification for these price adjustments is further supported by the rising costs of raw materials such as caprolactam and benzene in Europe. These increases in input costs provide suppliers with a solid argument for the necessity of price hikes. It is worth noting, however, that the extent of these increases remains constrained by the subdued activity in downstream markets, indicating a complex balancing act for suppliers.

In summary, while the European PA6 and PA66 markets continue to grapple with the challenges posed by the Middle East crisis and its impact on imports, there are signs of recovery and adaptation. Suppliers are strategically leveraging the situation to mitigate previous losses, albeit within the limits imposed by current market dynamics.