Nylon 66 / PA66 world supply to remain tight through 2021

Chemco Services Inc.
Nylon 66 Specialists
Nylon 66 / PA66 Off Grade Pellets, Baled Fibers, and Post Industrial Regrind Sales

Contact Jim Gubera at:  jgubera@chemcoservices.com    Tel # 281-556-6481
Plastic Sales / Plastic Scrap Recycling

Nylon 66 supply to remain tight for the next 3-5 years!

What a crazy time in the PA66 resin market!  I have been selling PA66 off grade pellets and scrap since 1996, and I have never seen the supply of 66 as tight as it currently is for both prime and off grade resin.  Be prepared, because the tight supply of PA66 is not a short term situation that is going to go away anytime in the near future.  Based on what is currently being experienced in the Nylon 66 market, I believe that the supply of PA66 resin will remain tight worldwide for the next 3-5 years.  The current shortage PA66 prime and off grade resins is being caused by a shortage of Adiponitrile (ADN) in the world market.

There are currently only 3 major producers of ADN in world Ascend (USA), Invista (USA) and Invista/ BASF JV in Chalampe, France.  Over the next 3 years all of the major ADN producers will increase their capacity (slightly) through modifications and changes at their existing plants.  The major PA66 polymer producers have the ability to increase the PA66 resin production, but they don’t have the ADN needed to run the polymer plants.  Their ability to make additional PA66 polymer is limited by the supply of ADN in the world market.  At this time there are no new ADN plants slated to be built and come online for production in the next 3-5 years.  Get ready, because there is no end in sight for the current shortage of PA66 that the market is currently experiencing.

The PA66 market has seen the price of off grade resin increase by at least $.60-$.70/lb. since November of 2017, and the price increases for both 66 prime and off grade pellets are not over yet.  I feel that the price of PA66 off grade pellets will continue to increase through the first half of 2018 before the market sees resin prices stabilize, and an increase in the volume of wide specification resin being offered for sale into the secondary market.  Be prepared to see new historically high prices for PA66 in 2018.

Although the price of PA66 is always significant to the buyers of nylon resin, unfortunately in 2018 the fact that you have access to supply of either prime and/or off grade 66 will become more important.  There is currently not enough PA66 finished polymer to meet world demand.  All PA66 buyers need to hope that there are no disruptions at any of the 3 ADN plants in the world, or else the PA66 supply chain will move into crisis mode, and the price of both prime and wide specification resin will go through the roof.

If you would like to discuss the current PA66 supply situation in greater detail please feel free to give me a call or send me an email with your questions, and I will be glad to share my insight of the current supply shortage of ADN and PA66 the market is currently facing.
Email:  jgubera@chemcoservices.com         USA Tel # 281-556-6481

Chemco Services sells:

Nylon 66 off grade pellets, baled fibers and PA66 post industrial regrinds and shred.

Chemco Services Inc.
Nylon 66 Specialists
Plastic Sales / Plastic Scrap Recycling
Contact Jim Gubera:  jgubera@chemcoservices.com
Tel #:  281-556-6481

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