April Nylon 6 deals see some upward movement

11 April 2007 23:59  [Source: ICIS news]

LONDON (ICIS news)--Several European April nylon virgin polymer (VP) contract negotiations have been settled this week, with an increase of up to €40/tonne ($54/tonne) achieved for some nylon 6 deals, producers said on Tuesday.

 

Traders and buyers also reported several contracts secured at a rollover from March.

 

However, with a significant proportion of April contracts still to be settled, prices were still assessed in a €1,910-1,940/tonne FD (free delivered) NWE (northwest Europe) range, according to global chemical market intelligence service ICIS pricing.

 

Producers said that some negotiations had been very difficult, with buyers refusing to move much on price despite the €30/tonne increase in April benzene contracts.

 

One major producer who had secured price hikes of €40/tonne acknowledged that it was unlikely that further contract business would be done at this level.

 

Compounders and buyers confirmed that producers had been looking initially for increases of up to €50/tonne for nylon VP 6, but that they were also more amenable to the argument that downstream demand, especially in the yarns business, had been weak.

 

Nylon 6 VP is used in the production of nylon fibres for textiles, carpets and industrial yarns as well as the growing engineering plastics business. Major European producers include Rhodia, Lanxess and BASF.

 

($1 = €0.74)

 

By: Mike Nash
+44 20 8652 3214

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