Europe nylon 6,6 February contract prices rise by €0.10-0.20/kg

28 February 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--Europe nylon 6,6 February contract prices have increased by €0.10–0.20/kg ($0.13–0.27/kg) because of rising upstream benzene and butadiene (BD) costs.

Nylon 6,6 (or polyamide 6,6) can either be manufactured using adipic acid – which is downstream of benzene – or adiponitrile (ADN) via BD.

Demand is high because of pre-buying, restocking and strengthening buying interest from the downstream automotive sector.

Market players are pre-buying on expectations that the March BD contract price will rise, pacing upward pressure on nylon 6,6 prices. Producers are targeting price rises of €0.10/kg in March, based on feedstock cost forecasts.

“There’s a big tension on nylon 6,6 because of BD, we’re expecting BD price increases of €200/tonne [in March],” a nylon buyer said.

Buyers are restocking empty pipelines following heavy destocking in November and December ahead of the year-end and just-in-time buying in January based on fears of macroeconomic uncertainty.

Automotive demand is strong because of high buying interest in Germany. Because of exports of finished goods to Asia, waiting lists for new cars in Germany are in excess of six months, according to market sources.

February nylon 6,6 virgin polymer contracts finalised at €2.80–2.90/kg FD (free delivered) NWE (northwest Europe), a rise of 4–8% month-on-month

($1= €0.75)

By: Mark Victory
+44 208 652 3214

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