This research concerns the effect of conductive network formation in a polymer melt on the conductivity of multi-walled carbon nanotube/thermoplastic polyurethane composite systems. An extremely low percolation threshold of 0.13 wt.% was achieved in hot-pressed composite film samples, whereas a much higher CNT concentration (3-4 wt.%) is needed to form a conductive network in extruded composite strands. This is explained in terms of the dynamic percolation behaviour of the CNT network in the polymer melt. The temperature and CNT concentration needed for dynamic percolation to take effect were studied by the conductivity versus temperature behaviour of extruded strands, in an attempt to optimise the processing conditions. © 2008 Elsevier Ltd. All rights reserved.