26 June 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European nylon 6,6 June contract prices have settled at a rollover to a reduction of €0.05/kg ($0.06/kg), buyers and sellers said on Tuesday.
Nylon 6,6 (or polyamide 6,6) June contract price rollovers were the result of balanced supply and demand fundamentals.
Reductions of €0.05/kg were caused by falling feedstock butadiene (BD) costs in June. The June BD contract settled at a reduction of €400/tonne.
Nylon 6,6 can be manufactured either using adiponitrile via BD, or adipic acid – which uses benzene as a feedstock.
A minority of players saw nylon 6,6 June contract reductions of as much as €0.10/kg, but this was not considered representative of the majority of business.
Buying interest from small- and mid-sized automotive producers is weak because of reduced consumer purchasing power.
Nevertheless, this has been counterbalanced by strong demand from premium-automotive manufacturers.
So far in 2012, premium-automotive demand has been unaffected by the effects of the general economic downturn because of high buying interest in China on the back of upwards social mobility.
Although some sources are now seeing signs of weakness in the premium-automotive sector, the majority of players continue to see premium-automotive demand as strong.
The virgin polymer nylon 6,6 contract finalised at €2.75-2.85/kg FD (free delivered) NWE (northwest Europe).
($1 = €0.80)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections