Polyamide or nylon prices up in Asia and Europe this June

Polyamide or nylon resin (chip) market in Asia trended mixed in the last week of June as upstream benzene markets remained at high levels while caprolactum market was flat in terms of trading volumes and prices. However, price in June rose from May as demand was modest with filament yarn producers operating at high rates given good margins. Engineering plastics and film plants also had better demand for chip.

Taiwan‐origin SD high-speed chip prices in June were at US$2,415-2,445 a ton up US$135 from May and 32% higher than last year. In China, SD chip offers were hiked US$40 to US$2,710-2,840 a ton.

In Europe, rising costs of nylon raw material for June asserting upward price pressure on the nylon chain. Benzene June contract jumped Euro 46 to settle at Euro 757 a ton. This pushed downstream caprolactum June contracts to settle at Euro2,263-2,424 a ton FD NWE, up Euro 23 from May.

Thus, nylon 6,6 June contracts were settled at increases of Euro 10 a ton from May, reflecting the ongoing supply tightness and surging upstream costs. June contracts were pegged at Euro 3,730-4,090 a kg (US$4,340-4,760 a ton) FD NWE for nylon 6,6 virgin polymer material.

Prices continued pinking up throughout H1 2018 amid global production problems, mostly percolating from upstream in the US and Europe. The most recent constraint one was in hexamethylene diamine market with BASF shutting it’s Seal Sands plant in UK. June butadiene cost also rose notably adding further pressure on nylon prices, despite being at historic high.

Nylon 6 contracts also settled steady-to-firm compared from May amid rising costs and healthy demand. Fundamentals were balanced in June despite a turnaround in caprolactam market and demand remaining firm in most downstream sectors. Availability was good throughout June and most buyers had no issues in securing volumes. More material from capacity expansions ramp up earlier in the year may enter the market soon and add to supply length.

Nylon 6 virgin polymer material June contracts were steady on the low end of the price range and up Euro 2 on the upper end at Euro 2,280-2,430 a ton (US$2,655-2,830 a ton) FD NWE. The slight upward movement on the upper end was the first rise one this year despite strong demand and balanced supply until now.

Caprolactum is used to make nylon 6 fibres for textiles and carpets, and engineering plastics for electronics and automobiles. Nylon, also called polyamide, is used mainly in fibre and engineering polymer applications. Nylon fibres are used in apparel, carpets and home furnishings.

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