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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.

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.

LANXESS TO CREATE INDEPENDENT HIGH PERFORMANCE BUSINESS
emobility charging

LANXESS plans to create an independent high performance business unit that includes nylon and (PBT), according to a recent press release.

The company has recently announced its intention to create an independent legal corporate structure for its High Performance Materials (HPM) business.

The portfolio includes the engineering plastics polyamide and polybutylene terephthalate business. The business also includes thermoplstic fiber composites.

The main downstream industries for the HPM products are automotive and electrical and electronics.

According to the company, a separate legal structure will enhance flexibility to be able to meet growth opportunities in a market that is transitioning to new forms of mobility.

The press note adds that “the business unit employs around 1,900 people at 14 sites worldwide. Sales are in the low single-digit billion euro range.”

PA66 PRICES INCREASED €40-50/MT IN OCTOBER
Car engine

PA66 prices increased €40-50/mt in October on the back short supply and high costs, according to GC Intelligence prices assessments.


Nylon 66 (PA66) prices have been supported for more than a year, rallying in the spring due to severe tightness.

A period of relative stability was expected in Q4 as supply disruptions eased lately.

However, the recent spikes in energy prices appear to have revived the upside in prices.

First, crude oil prices increased from around $75/bbl last month to $85/bbl and will likely push up raw material benzene prices.

Price Changes

Second, the high gas prices have increased prices and tightened ammonia supply, a vital raw material for both PA66 and PA6.

With more disruptions to value chains, players could face another wave of price increases in the next few months.

DOMO increases nylon and feedstock prices in October in Europe by €140-380/mt.


PA6 and PA66 (nylon 6/66) will increase by €225-380/mt.

The company pointed to the “strong escalation of natural gas and electricity costs” as a justification of the increases.

In the press release, DOMO noted that the Domamid base polymers will increase €225/mt, while Stabamid base polymers €380/mt.

Caprolactam, the main raw material for PA6, will increase €200/mt.

PA66 feedstocks prices will also increase, Adipic Acid by €140/mt and HexamethyleneDiamine €350/mt.

The price increases will be effective from the 1 October.

The supply of PA66 has been very tight for months and many suppliers remain in force majeure (FM).

The European PA6 market on the other hand has been more balanced, certainly compared to PA66.

The onging strong demand, driven by the pandemic, coupled with persistent supply issues will probably ensure that prices across the value chain will remain strong untill 2022.

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