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Polyamide demand drops to 2014 levels due to Covid-19 disruptions
but growth seen in recyclates and EVs AMI, in close cooperation with AWJ Plastics Consulting, has published a new authoritative report Polyamide Markets in Europe 2021.
The Polyamide market is one of the more profitable and dynamic thermoplastic markets in Europe. It is characterised by a large number of players, a strong and highly focussed end use processing sector and a changing supply structure.
There are approximately 7,500 moulders and 250 extruders processing PA in Europe. The PA polymer producers account for nearly two thirds of all PA compounds manufactured, and whilst over 100 independent compounders hold over a third of the market volume, their share in terms of value is disproportionate due to secondary and reprocessed PA compound sales commanding lower prices than virgin.
PA’s proven versatility in its modification with reinforcements, elastomers and additives, as well as its recyclability means that it is used in a vast range of applications, although its value varies greatly depending on grade, use and user. PA producers therefore require a well-structured analysis of the market to feel confident that they have understood current and future market demand to maintain satisfactory market progress.
Polyamides have provided the mainstay of plastics growth in markets such as automotive, electrical and electronic (E&E), and others. To a great extent, this is down to the use of additives and fillers that enhance performance in areas such as flame retardancy,
mechanical strength and toughness, and high temperature and chemical resistance. These performance gains are making PA compounds a ‘go-to’ solution for an ever-broader range of applications. Automotive and E&E remain key applications in the PA market. The shift to electric vehicles coincides with the focus on lightweighting to offset heavy batteries. There is also an increased need for compounds with higher temperature resistance.
Demand Demand growth for PA in Europe, however, has been slowing down, which posed major questions for the industry relating to market drivers, application dynamics and competitive strategies. This reduced level of growth over the past few years was primarily due to a significant fall in automotive production.
More recently due to the Covid-19 pandemic, demand for PA6, PA66 and High Temperature Nylon compounds at the processor level in Europe and Turkey fell in double digits, by 16% to around 912,000 tonnes in 2020. This fall in demand shrunk the market for PA to a level below that of 2014. Previously, the volume in the years from 2015 to 2019 had consistently risen.
Strong demand recovery is indeed expected in the next few years, and the demand is forecast to rise by an average of 4% per year to 1,080,000 tonnes by 2024. The main contributor to growth will be the automotive sector deriving from electric vehicles (EVs). So far, however, market recovery has been constrained by supply shortages accompanied by price rises of 25% during Q1 of 2021.
Polyamide Demand - Volume % Growth 2014 - 2020
Impact from Covid-19 pandemic has resulted in 16% fall in 2020 for polyamide demand.
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