Home Latest PA6

PA6

PA BUYERS FAIL TO PUSH PRICES DOWN IN MAY
plastic resins granules

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.

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.

ASCEND TO BUILD NEW HMD PLANT IN CHINA
polymer granules

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).

RADICI APPOINTS DISTRIBUTOR PLASTOPLAN
Distribution

Radici appoints distributor Plastoplan Kunststoffhandel GmbH in Austria from 1 January 2022, according to a latest press release.

“We are sure that, together with Plastoplan and our sales and technical team, we will be able to offer our Austrian customers the highest level of quality and flexibility”, said Rolf Behringer, sales manager DACH of RadiciGroup High Performance Polymers.

Plastoplan Kunststoffhandel GmbH has been operaing in Austria for the past 50 years and is part of the Hromatka Group. Hromatka Group already cooperates with RadiciGroup in other countries in Europe, namely Poland, Romania, Bulgaria, Italy and Turkey.

RadiciGroup High Performance Polymers, a global company headquartered in Italy, produces engineering polymers, including PA6 and PA66.

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.

Newer Posts