18 January 2011 23:30 [Source: ICIS news]
HOUSTON (ICIS)--BASF intends to raise its North American nylon 6 and nylon 6,66 contract prices by 8 cents/lb ($176/tonne, €132/tonne) effective 1 February, the global chemicals producer said on Tuesday.
Although buyers acknowledge upstream constraints, they said such aggressive pricing is not justified, and that producers were moving too quickly in an effort to maintain or broaden their margins.
BASF cited tight market conditions and pressure from raw materials as the primary rationale for its second straight monthly price-hike effort for the two products.
The initiatives cover nylon polymer for spinning, monofilament, film, wire and cable applications as well as neat resin for compounding, the company confirmed.
A producer who anticipated seeking a similar increase conceded intense buyer resistance to January and February price-hike efforts, but said “we really don’t have that much choice with ongoing raw material pressure”.
The producer said tight supply of caprolactam (capro) has continued to pressure nylon 6 pricing upward, adding that the global strain on capro supply and price likely will continue through 2011 and beyond.
BASF was still negotiating its January nylon 6 and nylon 6,66 initiatives of plus 10 cents/lb, sources said.
Honeywell also announced on 13 January its intent to raise North American nylon 6 contract prices by 15 cents/lb effective 1 February.
Honeywell previously announced plans to raise nylon 6 prices by 10 cents/lb effective in January. Current pricing for North American industrial-grade nylon 6 were 1.41-1.56/lb as assessed by ICIS.
($1 = €0.75)
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