The US market for nylon 6 and nylon 6,6 resins was stable during the week ended 2 August. Prices were unchanged from the previous week, and despite a fresh round of price hikes in benzene and butadiene for August, nylon producers have not put out any price announcements for the resin, to the surprise of some market participants. Sources said a price increase would seem almost inevitable, and were baffled by the absence of any initiatives so far.
Supply and demand for both products remained in good balance. Ascend Performance Materials has restarted its upstream acrylonitrile plant, which was down for a few days following a 24 July power failure, and the company’s nylon 6,6 production appears not to have been affected in any way. No other plant problems have been reported.
Demand was steady, with the automotive parts industry sustaining its recovery of this year, and outperforming other end-uses which were exhibiting more modest growth.
Feedstocks
US butadiene suppliers have nominated contract price increases for August. After some jockeying following the original announcements, the range of hikes sought is from 5 to 11 cents/lb, with a split settlement at $1.75/lb and $1.86/lb the expected outcome. July’s corresponding levels were $1.70/lb and $1.75/lb.
Spot prices remained static at $1.90-2.00/lb CIF US. Supply was still constrained by crude C4 availability, and with two major turnarounds beginning in September, the market will remain tight in the near term.
Refinery grade propylene (RGP) remained entrenched at just below the 70 cents/lb mark, with suppliers so far unable to pull it up to that level despite initially offering at 71-72 cents/lb. Actual trade was still thin, with a deal reported at 68 cents/lb during the last week. On 2 August the bid/offer range was 69/72 cents/lb.
There is no settlement yet for chemical grade propylene (CGP) in August. July’s level was 76.5 cents/lb.
The August benzene contract price has been fixed at $4.13/gal, up $0.44/gal from July and in line with spot prices at the time of settlement. Since then, spot numbers have risen sharply on the expectation of tighter supplies, and were indicated at $4.30-4.38/gal FOB on 2 August.
Overseas
In Asia, nylon chip spot prices were once again higher, rising by $50-70/tonne to a range of $3,700-3,730/tonne CFR China ($1.68-1.69/lb) for September deliveries. Firmer feedstock costs were behind this increase, as the Asian caprolactam contract prices for August began to settle at the $3,400/tonne level, up 4.6% from July.
Spot caprolactam has strengthened by about $20/tonne, and was indicated at $3,500-3,550/tonne CFR NE Asia on 27 July. Adipic acid spot levels were stable to firm.
In Europe, increased benzene prices are leading nylon 6 producers to look for hikes of €0.13/kg (8.4 cents/lb) for August, while nylon 6,6 is likely to roll over, aided by a very modest increase in butadiene cost. Demand for material is soft as is traditional for the month.
($1 = €0.70)
Covering editor: Tim Richardson,
tim.richardson@icis.com
This week on ICIS ( www.icis.com ):
08/02/11 10:02 Asia August capro settles around $150 higher this week
08/02/11 08:54 Taiwan's FCFC starts up nylon chip plant in Vietnam
08/01/11 20:26 Shell leaves BASF, Total C4 joint venture in US
08/01/11 12:07 Asia benzene hits three-year high, up $30-35/tonne
08/01/11 10:32 China’s Zhejiang Hengyi Caprolactam to start up plant in 2012
