In the first quarter of 2024, Nylon 6,6 prices experienced a mixed trend with notable price increase in the Asia-Pacific (APAC) region and decrease in Europe. The rise in APAC is attributed to robust demand from key industries such as textiles and automotive, which are recovering strongly post-pandemic. This heightened demand, coupled with limited supply due to previous production adjustments, has driven prices upward. Meanwhile, Europe faced a decline in prices due to reduced demand stemming from economic challenges and high inflation rates, leading to oversupply conditions. The combination of these regional factors resulted in divergent pricing trends for Nylon 6,6 across the globe during this period.
In the second quarter of 2024, Nylon 6,6 prices continued to rise significantly in the Asia-Pacific (APAC) region and began to increase notably in Europe. The price increase in APAC is driven by sustained demand from recovering sectors such as automotive and textiles, coupled with supply constraints as manufacturers adjust production levels to meet this demand. In Europe, the rising prices is attributed to a rebound in demand as economic conditions improve, alongside supply chain challenges that have led to tighter inventories.
In the third quarter of 2024 for, Nylon 6,6 prices exhibited varying trends across different regions, with prices remaining stable to slightly decreasing in the Asia-Pacific (APAC), while experiencing an upward trajectory in Europe. The stability in APAC is attributed to a balanced supply-demand dynamic, where manufacturers are managing inventories cautiously amid economic uncertainties and moderate demand from key sectors. The prices for Nylon 6,6 in July were hovering around USD 2735/MT in China (FOB Shanghai). In contrast, Europe saw an increase in prices driven by a resurgence in demand, particularly from the automotive sector, as economic conditions began to stabilize post-inflationary pressures. Additionally, supply chain challenges and tighter inventories contributed to this upward price movement in Europe. The overall market dynamics reflect the differing economic conditions and demand fluctuations across these regions during this period.
Expectations for Nylon 6,6 prices in the fourth quarter of 2024 indicate a mixed outlook across different regions. In Asia, prices are anticipated to stabilize or potentially decrease slightly due to easing demand from key sectors. Conversely, Europe is projected to experience a further increase in prices due to the approaching festive season as manufacturers ramp up production to meet year-end targets. This demand surge, coupled with supply chain challenges and rising feedstock costs, is likely to support higher pricing in the European market.