10 February 2009 23:59 [Source: ICIS news]
LONDON (ICIS news)--European nylon 6,6 (PA 6,6) first-quarter contract prices were down from the fourth quarter due to poor demand from the automotive sector and falling raw material costs, market sources confirmed on Tuesday.
First-quarter contracts for PA 6,6 were valued at €1.96-2.11/kg, down €0.30/kg ($0.39/kg) from the fourth quarter of 2008.
“If you compare fourth-quarter pricing to January and February, you could say that prices (PA 6,6) have eroded by 30 cents,” said a producer.
The first-quarter nylon 6 contract price was settled on a free delivered (FD) northwest Europe (NWE) basis, according to global chemical market intelligence service ICIS pricing.
Another producer said: “Nothing is changing in this market and I must say the trend (demand) is slightly down for February.”
The producer stressed that it was very difficult to give an absolute number in a market where there was no demand.
In the distribution sector, a US-based source said that it has seen the value of PA 6,6 drop in ?xml:namespace>
“We have seen dramatic drops in the value of raw materials such as butadiene, benzene and ammonia since October 2008, so prices are bound to come down,” said another nylon industry source.
Since the start of October 2008 to January 2009, benzene prices have dropped by 65%, butadiene by 55% and ammonia by 85%, according to ICIS pricing.
($1 = €0.77)
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