04 July 2012 09:43 [Source: ICIS news]
BRISBANE (ICIS)--Offers for Asian semi-dull nylon chip (polyamide) chips dropped by $100-150/tonne (€79-119/tonne) to $2,550-2,600/tonne CFR China this week following early settlements of the July caprolactam (capro) contracts, producers said on Wednesday.
Prices for Asian nylon chips were assessed at $30/tonne lower week on week at the low end of the range at $2,650-2,700/tonne CFR China in the week ended 3 July, according to ICIS data.
Nylon chip producers usually announce fresh nylon chips offers once they ascertain their feedstock costs. These producers typically require a $250-300/tonne spread between nylon chips and capro contract prices to break even.
However, the persistently weak downstream demand from the yarn segment continued to limit discussions and most buyers adopted a wait-and-see stance while slowing down their procurement amid low consumption.
Nylon chips buyers in
As a result, Taiwanese nylon chips plants were operating at below 60% of capacity on average, down from 70% last month.
A major Taiwanese producer has reduced its operating rates to 30-40% of capacity from 60% in June, according to market sources.
Another major Taiwanese producer said it is currently reducing the operating rate of its plant from 90% of capacity in June to probably 60% by end-July.
Chinese domestic plants are maintaining their operating rates at 70-75% of capacity, industry sources said.
Capro is an intermediate primarily used in the production of nylon 6 (or polyamide 6) fibres, plastics and other polymeric materials.
($1 = €0.79)
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