15 December 2010 20:19 [Source: ICIS news]
HOUSTON (ICIS)--BASF intends to raise its North American nylon 6 and nylon 6,66 contract prices by 10 cents/lb ($220/tonne, €165/tonne) effective 3 January, the global chemicals producer said on Wednesday.
The increase would cover nylon polymer for spinning, monofilament, film, wire and cable applications as well as neat resin for compounding.
The company’s rationale included ongoing tight market conditions and increasing raw material costs.
BASF’s previous initiative for nylon 6 was issued in early October, seeking a gain of 5 cents/lb, effective 18 October.
That price effort followed a similar announcement from Honeywell, and both producers cited raw material cost pressure as the primary reason for the fourth-quarter efforts.
A third, smaller producer said it had achieved October increases this month, but market sources have yet to broadly acknowledge fourth-quarter gains. Nylon 6 industrial-grade material was assessed by ICIS at $1.41-1.51/lb, pending broad market settlement of fourth-quarter price initiatives.
One major producer chose not to pursue increases in the quarter, and was awaiting December price settlements for nylon 6 feedstock caprolactam, which has risen steadily during the year on export demand and short supply.
The seller said broad price gains throughout the chain were likely to be realised in January, and that the new price push was likely to be successful over the near term, given the “urgency to adjust price versus raw material costs.”
In related news, buyers said earlier this week that Honeywell could restart its caprolactam plant in Hopewell, Virginia, by 22 December. The plant was unexpectedly shut down more than a week ago for undisclosed reasons, prompting a force majeure (FM) declaration.
($1 = €0.75)
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