31 January 2012 19:33 [Source: ICIS news]
HOUSTON (ICIS)--Dutch DSM Engineering Plastics has nominated a price increase for its nylon 6 film grade and base polymer grade materials in North and South America, effective 1 February, a company source said on Tuesday.
The 10 cent/lb ($220/tonne, €168/tonne) increase is based largely on caprolactam (capro) prices, which have increased since the first of the year, as well as benzene price hikes.
Current nylon 6 prices for bulk (unfilled) delivery are $1.93-2.08/lb. Package (unfilled) delivery prices are $2.08-2.22/lb. Industrial grade prices are $1.54-1.69/lb.?xml:namespace>
A source at The Netherlands–based company said the price for benzene looks to return to the third-quarter 2011 average, and has created a need to recoup the increase in raw materials cost.
The December contract price for benzene was $3/gal, while the January contract price was $3.70/gal. The average contract price in the 2011 third quarter was $3.94/gal.
The source said several of its customers approached the company in December, pushing for a decrease in prices because of the soft market at the time. The customers were told the company would not decrease prices for a short period of time, only to have to increase prices again in January.
If feedstock costs continue to go up and remain, then compounding material would also see price increases, the source said.
DSM has a 15,000 tonne/year facility in Augusta, Georgia, and is one of five nylon 6 producers in the US. DSM also has a production facility in Emmen, the Netherlands, which has a capacity of 85,000 tonnes/year, according to ICIS.
The other nylon 6 producers in the US include BASF, Custom Resins, Ems-Grivory and Honeywell.
($1 = €0.76)
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