Tai Hing Nylon is reporting PA66 and PBT raw materials, which are already at record highs, continue to see prices on the rise. Suppliers have limited supply and that scenario is expected to continue for the next three months.
Tai Hing previously reported that PA66 raw materials had increased by more than 30% at the end of November 2020. Due to the lack of upstream raw materials and price increases, most manufacturers with the limited PA66 have suspended new orders. Price increases are expected to last until May 2021. The notice of force majeure around the Chinese Spring Festival for the upstream manufacturers led to the continued lack of supply and increase in cost.
PBT is suffering from persistent shortages of the upstream raw material BDO which saw prices increase nearly 30% in February over January. March prices are soaring even higher as there is thus far a 137% increase in costs compared with February. Most of the PBT factories in the domestic market are closed and have stopped taking orders, with PBT supplies expected to be postponed until April.
Therefore, PA66 and PBT vendors are currently on extended delivery schedules and expect to remain on extended schedules over the next three months. Limited purchasing will be implemented to help minimize the impact on production plans for customers. Tai Hing encourages all clients to place and arrange orders of PA66 and PBT well in advance by contacting the sales team at the earliest convenience. Tai Hing will keep customers posted on market trading and material availability to help vendors plan through this period of limited supply.
Learn more about Tai Hing Nylon at www.taihingnylon.com.
