06 July 2012 07:50 [Source: ICIS news]
BRISBANE (ICIS)--Asian semi-dull nylon chip (polyamide) chip producers have been generating strong sales in the past two days at $2,530-2,550/tonne (€2,049-2,066/tonne), following early settlements of July contracts for feedstock caprolactam (capro), market sources said on Friday.
Spot sales are currently being settled at prices that are $120-150/tonne lower than ICIS’ last assessed price on 4 July at $2,650-2,700/tonne CFR (cost and freight) ?xml:namespace>
Most capro contracts for July were settled at $2,230-2,250/tonne on 4 July, down by $170-180/tonne from the previous month’s settlement, because of weakening spot prices and poor demand from downstream nylon sector.
“We have orders [for nylon chips] flooding in, literally. It seems like all customers suddenly wake up and started sprinting. They simply skipped the normal waking up, warming up, jogging, and running,” said a major Taiwanese nylon chips producer.
He said that
“But we do not know if all these market buying frenzy is sustainable,” the producer said
The strong buying momentum was a reversal of initial expectations by nylon chip producres early this week that buyers in
Another major Taiwanese producer said he had secured most of July sales, and is looking at increasing operating rate of its plant to 75% of capacity in the near term from 65% in June.
($1 = €0.81)
Additional reporting by Angeline Zhang
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