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PA BUYERS FAIL TO PUSH PRICES DOWN IN MAY
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PA buyers fail to push prices down in May and had to instead settle for a rollover from April.

Buyers saw yet another surge in prices in April, this time because of the higher energy costs.

Most accounts from March to April settled at an incraese of €400-500/mt for both PA6 and PA66.

Since then, energy prices, decreased, particularly gas prices which have had a big impact on electricity costs.

Gas futures have fallen from the peak of around €230/MWh in March to around €90/MWh, while crude oil from $124/bbl to $113/bbl.

However, sellers succeeded in rolling over prices in May, helped mainly by persistent frim raw material costs.

Benzene for example posted double digits increases from April to May, which appears to have been enough to support sellers.

A degree of resilince of demand also helped to prevent buyers from securing decreases in May.

Nevertheless, the outlook was getting weaker for the summer months.

A combination of seasonal retreat in costs amid lower demand because of inflationary pressures should be enough to support decreases.

EU PA66 PRICES INCREASE €80/MT IN FEBRUARY
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European PA66 price increase €80/mt from January to February, according to GC Intelligence assessments.

In February, the market environment did not change for many buyers as they continued to face delivery delays and low availability.

At the same time, costs were seeing continuous pressure from logistics, electricity, and raw materials.

Meanwhile, nylon 66 (PA66) demand continued to show good growth in several markets, especially electrical and electrocis.

However, the automotive market still lacked the stregth seen in other markets. The sector was still battling with a shortage of semiconductors.

Car Registtation Figures

But while the latest car registration figures remained negative, the numbers improved in January compared to recent months.

The outlook for PA66 prices, assuming there are no more surprises, sees an ease in the upside, driven by expectations of steady costs and better supply conditions.

PA66 PRICES GAIN €90/MT IN JANUARY

PA66 prices gain €90/mt from December to January, according to GC Intelligence price assessments.

Nylon 66 (PA66) found more support in January as it continued the upward momentum seen for most of last year.

PA66 Prices

Sellers succeeded once more to increase prices because supply remains tight amid good demand.

At the same time, the increases represent an attempt to pass on the cost increases of raw materials and utility prices.

The automotive industry is one of the largest markets for PA66. However, demand during the pandemic has suffered and continues to do so. Despite this, other markets are doing much better and are offsetting the slow demand from the automotive industry.

For example, the electrical and electronics market has been particularly strong during the pandemic. And there were no indications in January that suggest this trend was slowing down.

BASF WILL EXPAND HMD AND PA66 PRODUCTION
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BASF will expand PA66 and HMD production capacity by 2022 and 2024 respectively, according to a recent press release.

The project will consist of a new hexamethylene diamine (HMD) plant in Chalampé, France. This will take the company HMD capacity to 260,000 metric tons per year.

“BASF will expand its polyamide 6.6 production in Freiburg, Germany starting 2022,” the note said.

“BASF ensures that customers can be reliably supplied with HMD and PA6.6, while also addressing increasing demand in the market,” said Dr. Ramkumar Dhruva, President of BASF’s Monomers division.

HMD is a raw material for the production of nylon (PA66). PA66 is an important engineering plastic, extensively used in the automotive industry.

ASCEND TO BUILD NEW HMD PLANT IN CHINA
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Ascend recently announced to build a new HMD plant in China. The new facility will serve to supply its global polyamide production.


Ascend plans to begin production at the end of this year and start up is planned for the second half of 2023.

The project will be the company’s first chemical investment that it has made outside of the United States.

“This new plant is a symbol of our growth in the region and the partnerships we have developed,” said Phil McDivit, Ascend’s CEO.

The new HMD plant will be located in Lianyungang, China in the Xuwei New Area Park.

Hexamethylene diamine (HMD) is a major raw material for the production of Nylon 66 (PA66).

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