CMAI completes first edition of 2011 World Nylon Engineering Resins Analysis

The growth of global nylon 6 demand has been shaped in recent years by the movement of finished goods production to China from North America and the other regions, such that Northeast Asia has become the largest nylon 6 consuming region. 

China introduced a set of economic incentives aimed at stimulating domestic consumer demand for durable goods during the recent recession that succeeded in minimizing the local effects of the global slowdown. Demand growth in China has been much faster than nylon 6 capacity growth, increasing China’s reliance on a large volume of imported materials.

Global nylon 6 engineering resin demand is forecast to grow at an average annual rate of close to five percent. Announced capacity additions fall a little short of the forecasted growth in global demand, causing plant operating rates to rise only modestly over the next five years.

Global nylon 6,6 supply was constrained in 2010 by raw material supply concerns related to butadiene availability and production issues for key intermediates. Several force majeure declarations in Europe and North America impacted the global availability of nylon intermediates and tightened the supply of nylon 6,6. The demand for nylon 6,6 resin in 2010 has been mostly flat, and the gap between demand and capacity is not as large as for nylon 6.

Global nylon 6,6 engineering resin demand is forecasted to grow at an average rate of close to six percent per year over the forecast period. CMAI believes that additional capacity will be needed but will be dependent on the availability of intermediate materials. Adipic acid is readily available, but adiponitrile (ADN) and hexamethylene diamine (HMDA) technology and supply is more challenging.