Higher than normal inventories at the processor level have led to a decline in prices for several North American engineering resins in recent months.
Since September, regional prices for polycarbonate are down an average of 11 cents per pound, according to sources contacted by Plastics News. Prices in the region for nylon 6 are down an average of 12 cents per pound, with nylon 6/6 prices down 22 cents and ABS prices down 13 cents.
"People are still working out of inventory, but buyers are saying they had inventory and it's just getting to the point that inventory is depleted," one source said. "In the first quarter [of 2023], they'll be buying again at lower prices."
The automotive sector is a big end market for many engineering resins. The source said that auto production is expected to increase around 5 percent in the first quarter, which should boost demand for engineering resins.
Demand from appliances and electrical/electronics — two other significant engineering resin markets — is expected to be down slightly in the quarter, the source added.