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PA6 Prices Experience Significant Decline in July

PA6 prices experience significant decline in July. Preliminary market discussion indicate sharp declines, driven mainly by lower benzene prices.

This decrease in benzene prices has led to reduced costs for caprolactam, the key feedstock for PA6 production

Market discussions indicate that the price drops from June are substantial, exceeding triple digits.

The seasonal summer slowdown and ongoing poor macroeconomic conditions add further pressure on on demand and PA6 prices.

Any positive demand indicators are minimal and do not suggest a recovery. The overall market sentiment remains pessimistic amidst these challenging conditions.

PA66 AND PA6 PRICE GAP NARROWS AS DYNAMICS SHIFT
price stability

GC Intelligence (London) – PA66 and PA6 price gap narrows. Since the beginning of the year, the price gap between PA66 and PA6 has narrowed, impacting industries that rely on these materials.

Rising costs for PA6, despite weak demand, have driven this trend. Caprolactam prices, a crucial component in PA6 production, have surged by up to €400 per metric ton due to a tight market.

As a result, PA6 suppliers, already struggling with low margins from market oversupply and weak demand, had to raise their prices.

In contrast, European PA66 prices have remained stable. This stability stems from poor demand in one of its primary markets: the automotive industry. The anticipated rebound in the automotive sector has not occurred, and activity for many suppliers has decreased more than expected this year.

However, this narrowing price gap does not necessarily indicate a significant market shift. The disparity remains substantial at approximately €500 per metric ton.

The PA6 market has been particularly affected by low demand, competitive imports, and oversupply due to overcapacity.

While recent price increases may alleviate some pressures on PA6 suppliers, the fundamental challenges of oversupply and competitive market conditions persist.

RADICIGROUP’S RECYCLED NYLONS RECOGNIZED FOR STRINGENT APPLICATION
Circular economy

GC Intelligence (London) – RadiciGroup‘s recycled nylons recognised for stringent applications. PA6 and PA66 nylons are recognized for their stringent application in an award-winning air intake manifold for Marelli.

This innovative component, made from 100% recycled polyamide, won the Society of Plastics Engineers (SPE) award in the Power Train Auto category.

Designed for automotive use, the manifold leverages glass-fibre reinforced PA6 and PA66 nylons, demonstrating superior performance and sustainability.

Over the years, such applications have almost completely replaced metals in the automotive sector. The component underwent stringent tests, including pressure, vibration, and thermal cycles, ensuring it meets high industry standards.

RadiciGroup’s Renycle polyamide achieved over 70% CO2 emission reduction, as measured by Life Cycle Assessment (LCA) methodology.

This highlights the advanced engineering behind their eco-friendly innovation, focusing on mechanical and thermal performance.

PA6 AND PA66 DEMAND REACHES NEW LOWS IN EU
price decreases

GC Intelligence (London) – July 2024 – Demand for PA6 and PA66 engineering resins has plunged to unprecedented depths, reaching what may be the lowest level of the year. Recovery continues to be elusive across key sectors such as automotive, electrical, and electronics.

Despite relative stability, the automotive sector’s demand remains substantially lower than last year. The construction industry, in particular, ranks among the worst performers.

New data from Eurostat supports the bleak outlook on the European market, showing ongoing contractions in industrial production, durable consumer goods, and construction since the start of the year.

DOMO EXPANDS TECHNYL® PRODUCTION IN CHINA
agreement

DOMO expands TECHNYL® production in China. DOMO Chemicals has opened a new TECHNYL® polyamide plant in Jiaxing, China.

The facility responds to the surging local demand for engineered materials. With a €14 million investment, the plant’s capacity could reach 50,000 tons.

This expansion doubles the existing capacity to better serve key industries. The Jiaxing plant will primarily supply the automotive and electronics sectors.

It also aims to support the growing markets for green energy and mobility. CEO Yves Bonte emphasizes the importance of staying close to customers.

The plant spans 40,000 square meters, featuring state-of-the-art technology. Since 2016, DOMO has significantly increased its footprint in China. The new facility underscores DOMO’s commitment to sustainable, high-quality solutions.

Following the acquisition of Solvay’s business in 2020, DOMO now exclusively produces and distributes TECHNYL®, featuring both PA6 and PA66 solutions.