US DuPont, Honeywell seek 12 cent/lb hikes on nylon resins

24 February 2011 20:07  [Source: ICIS news]

HOUSTON (ICIS)--A new round of price increase nominations in the nylon 6 and nylon 6,6 markets have started, sources said on Thursday, with DuPont and Honeywell out in front.

DuPont announced a price increase nomination of 12 cents/lb ($265/tonne, €193/tonne) effective on 1 March, or as contracts allow, for its nylon 6,6 resins.

Honeywell nominated a price increase of 12 cents/lb for nylon 6 effective on 4 March, or as contracts allow.

Sources said BASF had also announced a price increase of 12 cents/lb for nylon 6 for early March, but this was not confirmed.

Each company said the initiatives were mostly sparked by rising feedstock costs.

For nylon 6, global prices of feedstock caprolactam (capro) have surged in recent months because of plant outages and tight supply.

The February capro contract price in Asia jumped to $3,200-3,210/tonne CFR (cost and freight) NE Asia, as assessed by ICIS, and the March contract is expected to settle higher by $300-340/tonne.

In Europe, the February capro contract price settled higher by $178/tonne, at $3,482-3,559/tonne FD (free delivered) NWE (northwest Europe).

For nylon 6,6, feedstock butadiene (BD) has remained tight globally, with the US February contract price settling up by 8 cents/lb at 99 cents/lb FOB (free on board).

Surging feedstock costs from tight supply have pushed US domestic nylon 6 and nylon 6,6 prices to record levels.

As assessed by ICIS, bulk unfilled domestic nylon 6 prices were at 187-202 cents/lb FOB, and bulk unfilled nylon 6,6 prices are at 213-223 cents/lb FOB.

($1 = €0.73)

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By: John Dietrich

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