13 April 2010 23:59 [Source: ICIS news]
(Recasts, clarifying fourth paragraph)
LONDON (ICIS news)--European nylon 6 April contract prices rose by €0.10-0.20/kg ($0.14-0.27/kg) from March, due to tight supply and higher raw material costs, buyers and sellers said on Tuesday.
April virgin polymer nylon 6 contracts settled at €1.90-2.10/kg FD (free delivered) NWE (northwest ?xml:namespace>
Sources said the size of April nylon 6 contract price increases was dependent on when contracts were settled, with contracts agreed before the upstream April benzene contract price increase of €142/tonne was announced settling below €2.00/kg, and those finalised afterwards settling above this level.
One nylon 6 buyer said: "We closed April at €1.90-2.00/kg, depending on when." The buyer continued: "After [the April] benzene [contract settlement] it was €2.00/kg."
Limited supply of nylon 6 was due to difficulties in sourcing the feedstock caprolactam and strong downstream demand, players said.
Consumption was strong across end-use markets because of macro-economic recovery, sources said, with buying interest particularly heavy from the automotive sector. Some sources said restocking was also increasing demand.
“Nylon 6 is very, very tight. There’s been a big run on material," a nylon 6 producer said. "Clients’ stocks were low, so they’ve had to increase [these] because they’ve got orders, especially in engineering plastics.”
Export demand remained firm as high domestic prices in
Nylon 6 was expected to remain in short supply during May, with several planned outages in the upstream caprolactam market likely to make sourcing raw materials difficult throughout most of the second quarter, players said.
($1 = €0.74)
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