Asia nylon chips purchases turn robust at $2,530-2,550/tonne

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) China.

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 China’s monetary easing measure announced overnight – cutting its policy rates effective 6 July – helped boost buying sentiment.

“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 China are also likely to slow down their procurement amid low consumption in July and August amid the volatility in energy prices.

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

By: Junie Lin

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly