Nylon prices strong despite weak benzene
Nylon prices (resin and filament) resisted any fall in the first week of March emerging from weakening feedstock benzene markets. However, it is apparent that, caprolactum prices have remained firm on short supply which have been supporting downstream nylon chip and filament yarn markets.
Asian benzene prices fell amid a weak market sentiment and cargo-holders cutting offers slightly dragging down discussion levels. Steeper drops in styrene monomer prices, together with falling crude and producers cutting offer, undermined benzene market confidence. In Europe, benzene spot values partially regained amid absence of viable arbitrages and limited downstream demand. In US, spot benzene widened, with prices moving up and down but ended higher.
CPL prices continued to firm up in Asia although feedstock benzene market weakened further. The support for hike was tight supply and demand modest. In Europe, March CPL negotiations began with price sentiment varying following balancing pressures. Some buyers targeted decreases, citing drop in benzene costs and healthy supply. Caprolactum is used in manufacture of nylon yarn and fibre for textiles and carpet.
Nylon chip market sentiment was positive in Asia with some offers picking up as caprolactum markets trended up. Chip supply is ample, while stocks with customers were reportedly increasing, which was affecting buying sentiment. In Europe, negotiations for March were initiated in nylon 6 market with some buyers targeting decreases while some targeting rollovers. Supply in nylon 6,6 market was tight, where negotiation were heard to be mute initially.
Nylon filament yarn markets continued to remain supported by rising caprolactum and favorable chip markets. Demand was seen increasing as textile producers resumed plant operations. Demand for FDY, DTY and POY was positive than earlier weeks. Thus, nylon prices are anticipated to remain stable to firm going ahead, but much would depend on how benzene markets performs in a volatile oil market situation.
