Polyamide price surges as caprolactum cost spikes
Polyamide or nylon chip prices moved up sharply in Asian markets as caprolactum contracts and spot markets took upward march. Demand was picking up as nylon yarn producers resumed production, but many workers were yet to back from the New Year break. Since yarn makers had already stocked up some volume before the holiday, post‐holiday market was less active. Demand from cord fabric, monofilament, staple and fishing‐net yarn are expected to climb in coming weeks. In US, Ascend Performance Materials’ production of nylon 6,6 resins is likely to be impacted by its recent declaration of force majeure supply on hexamethylene diamine feedstock. Global supplies of nylon 6,6 have been tight since early 2018, largely due to limited supplies of ADN.
Nylon filament yarn prices jumped in Asia as caprolactum spot and contract values both moved higher leading to gains in polyamide chip prices. Downstream textile mills were resuming operation, though some smaller mills were yet to restart. Nylon‐6 FDY prices inched higher tracking chip gains and suppliers reported fair margin. Nylon 6 DTY prices were stable‐to‐firm, with downstream demand slowly returning.
Caprolactum suppliers in China hiked offers on modest downstream demand and increasing cyclohexanone cost. Liquid and flake materials prices were raised 3-8% in the second week of February. Fibrant also raised its February contract nomination by more than 2% for liquid goods while Japan’s Ube Industries settled its February contract higher citing that the increase comes amid stronger demand for polyamide chips after the Lunar New Year holidays. In Europe, caprolactum February contract discussions remained inconclusive as spot remained well supplied, despite concerns in upstream cyclohexane market.
However, feedstock benzene prices moved within a narrow range in Asian markets lacking definitive direction. Activities had tapered off before the Lunar New Year holiday leading to increase in inventories along eastern China. European benzene market was thinly traded, with February prices in contango and expectations of reduced length and healthier demand in the forward months. In US, spot prices rose for second consecutive week as market showed some signs of rebalancing.
Source: Global Markets Weekly Review
