Home NewsPA66 PA66 Prices in Europe Are Decreasing Amid Lower Benzene Costs

PA66 Prices in Europe Are Decreasing Amid Lower Benzene Costs

July 10, 2024

PA66 prices in Europe are decreasing. In July 2024, PA66 prices are dropping by as much as €50 per metric ton, according to GC Intelligence. This decline is largely attributed to a reduction in benzene prices in July, which fell by €162 per metric ton from June.

While benzene prices do impact PA66 costs, they do not significantly affect them as they do for PA6, where benzene comprises a larger share of raw material costs. Consequently, the price decrease for PA6 has been more towards triple digits.

Demand for PA66 remains low, with suppliers actively seeking to maintain volume sales. The typical summer slowdown is in full effect, leading to reduced purchasing activity as plants shut down for the holiday period. Despite high freight rates making imports less competitive, the market has not seen a corresponding rise in demand.

The prolonged lead times and elevated freight costs have made PA66 prices from Asia uncompetitive. Consequently, these prices are now higher than European prices, leading to a lack of offers from Asian suppliers.

Additionally, the market faces challenges due to significant exposure to sectors such as automotive, electrical, electronics, construction and industrial applications. These sectors are currently experiencing poor activity due to weak economic conditions.

In this environment of low demand, the reduction in raw material costs has led suppliers to lower their prices, with little room to improve ongoing poor margins.