PA/PBT higher as costs surge

European PA6 supply was well balanced with the continued weal levels of demand. While there were signs of livelier order intake from the automotive and E&E sectors, demand remained well below their pre-crisis levels.

Natural PA66 prices climbed €100-120/tonne during the first three months of the year following sizeable increases in the cost of adipic acid and benzene.

PA66 supply is tight with the force majeures announced by BASF and Rhodia last year having still not been lifted and adipic acid also seeing supply shortages.

Demand started to return to more normal levels as Q1 progressed with automotive and consumer goods manufacturers showing stronger production levels.

In Q2, PA6 and PA66 producers are seeking price increases of €250/tonne and €350/tonne, respectively, as a result of higher feedstock costs and a need to restore margin.

PBT prices moved up by more than €100/tonne during Q1, spurred on by the rising cost of key feedstock such as butanediol and DMT. Imports came to a virtual standstill as a result of booming Asian demand while European material availability remains tight. Order intake showed some sign of recovery during the last three months. PBT sellers will continue to push for higher settlements in Q2.