29 May 2012 23:59 [Source: ICIS news]
Correction: In the ICIS news story headlined “Europe nylon 6 and 6,6 May contract prices fall on weak demand” dated 29 May 2012, please read in the seventh paragraph … settled at €2.30-2.50/kg … instead of … settled at €2.30-2.50/tonne…. A corrected story follows.
LONDON (ICIS)--European nylon 6 May contract prices fell by €0.07-0.12/kg ($0.09-0.15/kg), and nylon 6,6 fell by €0.10/kg because of weak demand and oversupply, buyers and sellers confirmed on Tuesday.
Nylon (or polyamide) demand is now a more important driving force than feedstock costs, the majority of sources said.
Consumption is weak because of bearish macroeconomic sentiment, which has caused buyers to purchase on a just-in-time basis and lower inventories.
Demand has been further limited in May by a large number of public holidays across ?xml:namespace>
Volatile upstream benzene prices are adding uncertainty, further limiting market activity.
As a result of weak buying interest, nylon 6 operating rates have been cut to around 70% of nameplate capacity, according to market estimates.
Nylon 6 May virgin polymer prices settled at €2.30-2.50/kg FD (free delivered) NWE (northwest
Nylon 6,6 May virgin polymer prices settled at €2.80-2.85/kg FD NWE.
Nylon 6,6 prices are not expected to fall in June, despite a sharp fall in the upstream butadiene (BD) June contract price. This is because of weak margins for nylon 6,6.
The BD June contract price fell by €400/tonne.
($1 = €0.80)
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