Benzene prices retreated sharply in first week of March

Benzene prices declined in the week ended 3 March, across regions with Asian markets posting the sharpest drop. Benzene was cheaper in Asian on downstream weakness as buyers were cautious amid instability. European benzene spot also declined on bearish sentiment despite the market was balanced to tight. March contract was settled down on the month. In US, benzene trended lower on mute derivative demand due to outages. March contract also settled down on the month stopping several months of increases. Latin benzene pricing fell on lower demand.

Caprolactam prices were stable to down on the back of softening feedstock benzene prices and increased supply.  Meanwhile, Sinopec raised its March contract nomination while Fibrant released its nomination for March at similar levels. In Europe, caprolactum market was to begin March contract price negotiations after the initial settlement of benzene March contract was down on the month.

Nylon chip prices were stable to soft on range‐bound raw material. High‐speed spinning nylon chip maintained stable momentum while conventional spinning nylon chip values softened. Downstream converters intensified production, leading to rigid demand for nylon chip and thus active liquidity.

Nylon filament yarn markets lacked strength to pick up to relieve cost pressure. Yarn makers kept stable operation while downstream converters consumed inventory, showing demand for nylon yarn. Warp knitting, weaving and AJ covering sectors witnessed smooth demand while circular knitting mills and lacing mills ran at low run rate, implying modest demand for nylon yarn. In March-April, mills will continue to increase run rate, boosting demand for nylon yarn.