28 September 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--European nylon 6 (polyamide 6) September contracts increased by €0.05/kg ($0.07/kg) at the bottom end of the range, buyers and sellers said on Tuesday, due to tight supply and strong demand.
Nevertheless, the majority of contracts saw a rollover in prices.
Virgin polymer nylon 6 September contracts settled at €2.05-2.10/kg FD (free delivered) NWE (northwest Europe), players reported. A minority of sources saw prices as low as €2.03/kg FD NWE, but agreed that €2.05/kg FD NWE was a fair representation.
Nylon 6 supply was tight because of difficulties in sourcing feedstock caprolactam and high demand, producers said.
“There’s a lack of caprolactam. Nylon 6 is very tight because of this,” a producer said.
Strong consumption was predominantly coming from the downstream engineering plastics industry. This was driven by strong automotive demand from Asia and the US and latent European automotive demand from the global economic downturn in 2008 and 2009 when car purchases were delayed.
“Automotive demand is good, it’s driven by luxury cars in Asia,” another producer said.
The exception was Italy, where automotive demand was reported as weak due to a decline in local car manufacturing.
“Demand in Italy isn’t exciting, the automotive market is not exactly flying high,” an Italian compounder said.
($1 = €0.74)
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