From Bottleneck to Oversupply: How the PA66 Industry Shifted in 2025

The global nylon 66 industry has undergone a dramatic reversal over the past few years. Not long ago, producers were struggling with a shortage of upstream materials, particularly adiponitrile and hexamethylenediamine. By the end of 202,5, the sector is facing the opposite problem. A surge of new capacity, led by China, has pushed the market into a prolonged period of oversupply.

This year has been a turning point. Below, we examine what happened, why it matters, and its implications for the future of PA66.

A Tough Environment for Western Producers

Since early 2023 producers in Europe and North America have been under significant strain. Demand has remained weak, especially from the automotive sector, which is traditionally the largest user of PA66 engineering resin. High energy costs, ongoing inflation and steady interest rates have added pressure. These factors have squeezed margins and forced several major players to rationalize assets or withdraw from certain parts of the value chain.

In Europe operating rates have fallen to roughly 60–65%. Over the past two years the region has seen a series of plant closures, divestments and exits across intermediates and polymer production. The United States has faced similar challenges, with capacity shutdowns and restructuring efforts reflecting the same economic and competitive pressures.

China Becomes the Center of Gravity

The most decisive shift has come from China. Between 2022 and 2025 the country added about 70% more PA66 polymer capacity, taking national nameplate output to nearly 1.5 million tonnes per year. Upstream materials have expanded rapidly as well. A series of new HMDA plants has removed what used to be a major bottleneck for domestic resin production. As capacity has grown, local prices for HMDA and PA66 have steadily declined, reinforcing China’s competitive position.

By the end of 2025 China’s PA66 capacity exceeds the combined total of Europe and North America. This has reshaped global trade dynamics and established China as the key driver of international pricing.

Oversupply Becomes the Dominant Theme

Demand growth simply has not kept pace with the rapid buildout. China’s PA66 consumption in 2025 is expected to reach 900–950 thousand tonnes. Against nearly 1.5 million tonnes of capacity, producers are operating at only 65–70%. The gap between supply and demand continues to widen.

This imbalance has led to persistent downward pressure on prices not only in China but also in Europe and North America, where domestic suppliers now compete directly with lower-cost imports.

More Capacity Still to Come

Perhaps the most striking part of the outlook is what lies ahead. Public information suggests that more than one million tonnes of additional PA66 capacity is planned in China for the coming years. If these projects are realized at scale the market may face a decade or more of extended oversupply.

Producers everywhere will need to adapt. Efficiency, integration, cost control and strategic partnerships will become increasingly important in a competitive market where buyers have more choice than ever before.

What to Expect Next

The PA66 industry has moved from scarcity to surplus in a remarkably short period. The shift has created new challenges but also new opportunities. Some producers may struggle with weaker margins and falling prices, while others may benefit from lower feedstock costs or improved availability of materials that were once constrained.

Above all, 2025 has shown that the global PA66 landscape is changing rapidly. Companies that understand the evolving supply balance and position themselves accordingly will be best placed to navigate the next phase of the market.