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NYLON RESINS PRICES INCREASE IN NOVEMBER

Nylon resins prices increase in November by €70-120/mt, according to the latest assessments from GC Intelligence. The increases in costs added another factor pushing up prices.

The recent increases in gas prices pushed up electricity prices and other costs, including raw materials. PA66 prices increased the most, particularly compounds given the shortages of additives.

Moreover, PA66, despite producers beginning to lift force majeure (FM) is still relatively short. The subdued demand from the automotive industry for now is only providing some relief to supply and avoiding a critical situation.

For PA6, the market is more balanced, but the higher gas prices have also hit the ammonia market, an important raw material. Most buyers will struggle to avoid increases during what seems be another wave of upward direction in prices in the next few weeks.

The higher energy costs added to other supporting factors, such as logistic disruptions and good demand in many markets. There will be resistance from those buyers that have seen prices increase during most of this year. But most will probably struggle to secure rollovers.

POLYCARBONATE PRICES INCREASE €140/MT
Headlight of the car

Polycarbonate prices increase €140/mt in November 2021, according to GC Intelligence prices assessments.

Disruptions to supplies, logistics issues, rising raw materials costs, and now high utility bills created another wave of price increases.

The latest addition to costs has been the rising gas prices which has pushed up electricity costs for producers.

There were announcements of increases between €450/mt and €650/mt. But as prices are already at very high levels for buyers, there was considerable resistance.

Therefore, players are trying to negotiate higher prices in stages. While many buyers will probably not absorb the entire proposed increases, they may have to accept substantially higher prices by Q1.

DUPONT ANNOUNCED PRICE INCREASES
polymer granules

DuPont announced price increases on nylon 6 and nylon 66, polybutylene terephthalate (PBT) and polyoxymethylene (POM) of €330-500/mt.

The company, blaming current market conditions, noted that the increases will be effective from 1 December or as contracts allow.

Nylon 6/66 (PA6/66) products will increase by €480/mt, PBT will increase €500/mt, and POM 330/mt. DuPont announced price increases much higher for flame retardant products.

In the past few weeks, most polymer producers have been reactive to the ongoing surges in costs.

In addition to supply disruptions and rising raw materials, gas prices have pushed up costs of production.

The increases in gas prices have increased utility costs and polymer producers are trying to pass these on to their customers.

Moreover, in the case of nylon, particularly nylon 6, ammonia shortages and high prices created an additional cost increase of the raw material caprolactam.

EU GDP INCREASED 3.9% IN Q3 2021

EU GDP increased 3.9% in Q3 2021 compared to the same quarter last year, according to a recent note from Eurostat.

The increase between Q2 and Q3 was 2.1%. Meanwhile, for the euro area the increase in Q3 versus last year was 3.7 and compared to Q2 was 2.2.

GDP Growth Chart

The increases are much smaller than the duble-digit increases seen for Q2. But this was against a low base established during the first wave of the pandemic.

Meanwhile, GDP growth remains in positive territory after a period of negative readings between the first quarter of 2020 and the first quarter of 2021.

ROEHM EXPANDS PMMA CAPACITY IN EUROPE
car rear lights

Roehm plans to expand its polymethyl methacrylate (PMMA) moulding compound capacity in Worms, Germany, according to a recent press release.

The reason for the expansion is to meet the demand growth in downstream products. The new capacity will also provide flexibility and security of supply.

“Trends like electromobility and self-driving cars place new demands on automotive applications which we will meet with our high-quality PLEXIGLAS® molding compounds”, says Siamak Djafarian, Senior Vice President Business Unit Molding Compounds. 

The company plans to complete the expansion during the third quarter of 2023.

In June, the company announced the construction of a large-scale plant in the US for the raw material methyl methacrylates (MMA).

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