Benzene relent early September, nylon or polyamide to benefit

Nylon or polyamide market are likely to benefit from the trimming of benzene prices across regions in the first week of September, However, the impact of the fall will have some lag downstream.

Asian benzene markets were bearish amid falling trades and increased inventories at east China ports which also undermined market sentiment. Buyers were not willing to purchase, while cargo-holders cut offers, dragging down benzene prices. In Europe, limited trades was heard resulting in spot edging down. In US, spot prices softened on ample supply and slower downstream demand.

JXTG Nippon settled its September Asia Contract Price at US$900 a ton CFR Asia, US$40 higher than Augusts and down from its nomination at US$920 a ton.  In US, September benzene was assessed at US cent 280-285 per gallon based on bids and offers.

Caprolactum (CPL) markets in Asia were in tight supply and prices picked up thereby. Mainstream values for liquid materials in China were raised as offers from producers were hiked despite demand was flat. In Europe, caprolactum August contracts were agreed at varying decreases as benzene contract fell in August and September. August contracts settled down Euro10 at Euro2,272-2,433 a ton FD NWE.

Nylon or polyamide chip prices gained in Asia as cost kept galloping while overall market was favourable. Suppliers stuck to offers citing high feedstock costs and low downstream inventory, while downstream buyers were cautious to follow.

In Europe, nylon 6,6 August monthly prices were stable to firm on continued supply pressure. Prices moved in line with the average feedback and lack of availability. There was an expectation that the supply constraints will remain a challenge this year for market players. August contracts for nylon 6 virgin polymer rolled over at Euro 2.28-2.43 a kg FD NWE while nylon 6,6 virgin polymer rose Euro cents 5 to Euro 3.98-4.34 a kg FD NWE.

In US, September nylon 6 prices increased US cent 1 from August on higher benzene contracts and caprolactum shortages.

Nylon or polyamide filament yarn markets were firm supported by rising chip market while demand was almost flat as operations in terminal sector were cautious. Prices in India remained unchanged at the moment in Surat market.