In the first quarter of 2024, the global Nylon-6 market exhibited a bullish trend, with prices increasing by 6% compared to Q4 2023. This rise was driven by escalating prices of feedstock Caprolactam, along with higher freight rates and improved global capacity utilization. A 7.4% uptick in container port volumes and a 10.4% growth in container ship supply further contributed to rising freight costs. Additionally, steady demand from downstream industries, especially automotive and textiles, enabled manufacturers to pass on these increased expenses. Seasonal factors, such as the Lunar New Year, also played a role in this bullish trend, as many factories in Asia were either shut down or operated at reduced capacity, which resulted in product shortages in the global market.
In the second quarter of 2024, Nylon-6 prices experienced a decline due to several key factors. Weak demand from downstream industries, particularly textiles and automotive, led manufacturers to lower prices to stimulate sales. Additionally, improved supply conditions following production resumption from major producers contributed to increased availability. Fluctuating feedstock prices for Caprolactam, along with the influx of cheaper imports, further pressured local prices downward. Broader economic conditions, including inflation and cautious consumer spending, also played a role in dampening demand across sectors reliant on Nylon-6 products.
In the third quarter of 2024, Nylon-6 prices experienced a slight decrease due to several factors. Demand from downstream industries, particularly textiles and automotive, remained weak, prompting manufacturers to lower prices to stimulate sales. Improved supply conditions following production resumption from major producers also contributed to increased availability, putting downward pressure on prices. Additionally, fluctuations in feedstock costs for Caprolactam, along with broader economic factors such as inflation and cautious consumer spending, further dampened demand. The price of Nylon-6 in China was hovered around USD 1835/MT (FOB Shanghai).
Nylon-6 prices in the fourth quarter of 2024 are expected to continue the current trends, with expectations of stable to slightly declining prices. During the winter season, the market is anticipated to face weak demand, particularly from the construction sector. Demand from the automotive industry may see a modest increase as festivals like Christmas and Diwali significantly impact automobile sales, often leading to increased consumer spending and heightened demand for vehicles. However, overall growth in the automotive sector is expected to be flat due to cautious consumer spending.