Nylon prices firmer despite need base demand and benzene snapping

Nylon filament yarn (NFY) prices edged up in Asian markets on slightly higher nylon chip and caprolactum cost, but demand was on a need-to basis. Fundamentals were moderate on the back of normal production and passable demand. Price in India and China remained unchanged in the second week of September. However, nylon staple fibre prices also inched up on cost support and limited supply.

Upstream nylon chip or polyamides offers were stable amid higher feedstock caprolactum cost in Asian markets. Discussions for high-speed spinning nylon chips saw an uptick during the week as some buyers looked to replenish inventory levels. Demand stabilized after the lull season, so there was not much incentive for producers to adjust prices at this time.

In Europe, nylon polymer prices were stable to firm on continued supply pressure. In US, Ascend Performance and BASF sought to increase prices for nylon 6,6 due to tight supplies. The increase is being made amid tight nylon 6,6 supplies stemming from severe shortages of feedstock adiponitrile (ADN) in the global market. The increases were amid severity of supply tightness in the global market. Supply of ADN is expected to remain tight well going 2019, despite planned capacity expansions at INVISTA’s Texas plant in Q1 2019.

Upstream caprolactum (CPL) markets were stable to up in Asia although feedstock prices were on a weak note and downstream demand passable. Sustained tight supply has been supporting caprolactum prices in the region. In Europe, negotiations for September contracts were yet to begin with mixed expectations as feedstock benzene contract fell for the month.

Feedstock, benzene was cheaper as market weakened and inventories along eastern China coast increased 1.1%. Both, PetroChina and Sinopec cut their domestic list price citing falling market discussion levels. In Europe, benzene prices fell as supply remained long, despite restart of a styrene facility while October remained in contango. US spot prices also decreased amid sufficient supply and lower prices for downstream styrene. September trading activity was less active than October.