24 April 2012 23:59 [Source: ICIS news]LONDON (ICIS)--European nylon 6 contract prices for April have decreased because of lower-than expected demand and lower feedstock costs, producers and consumers confirmed on Tuesday.
Virgin polymer nylon 6 (or polyamide 6) prices moved down by an average of €0.03/kg ($0.04/kg), to €2.37–2.62/kg FD (free delivered) NWE (northwest Europe).
Nylon 6 prices have fallen in April on a combination of lower feedstock costs, weaker-than-expected demand and poor market sentiment in the key Chinese market.
In relation to the falling prices, a nylon 6 producer said: “We clearly see demand getting weaker and we see a decrease of 25% compared to what we expected for the time of year.
“But we see Europe as a more stable market than Asia, where prices have fallen by $200–300/tonne, but in Europe we see [April prices] come down by €0.02-0.04/kg.”
The producer added that the price erosion had been gradual over the month.
“It was a rollover at the start of the month, but as it has progressed prices have come down,” said the producer.
On the buying side, consumers have been pushing for a decrease because of lower feedstock costs, eroding margins and a weak market in China.
Developments in China heavily influence nylon and nylon intermediate markets in Europe.
A European consumer procuring nylon 6 for bulk continuous filament (BCF) for carpet manufacturing said its April prices eased in line with the April benzene contract price, which fell by €37/tonne.
“Our demand is acceptable, but there is a slowdown in demand which is typical in the carpet sector this time of year. For April [contracts] the benzene decrease has been passed and I see prices stable in May.”
($1 = €0.76)
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