24 July 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European nylon 6,6 July contract prices settled at a reduction of €0.05-0.08/kg ($0.06-0.10/kg), because of lower feedstock costs, buyers and sellers said on Tuesday.
The July butadiene (BD) contract price fell by €350/tonne, while the July benzene price fell by €68/tonne. Nylon 6,6 (or polyamide 6,6) can be manufactured either from adiponitrile via BD, or from adipic acid, which is downstream of benzene.
Nylon 6,6 producers linked to BD were able to resist stronger price falls because of low nylon 6,6 margins.
Nevertheless, producers linked to benzene are concerned that margins will once again be squeesed in August because benzene spot prices are trading well above the July contract, which was agreed at a dollar price of $1,183/tonne FOB (free on board) NWE (northwest Europe). At midday London time on 24 July, benzene spot bids and offers for August were at $1,310-1,375/tonne.
The concern is that with nylon 6,6 demand slowing due to traditional summer holiday outages, it will not be possible to pass feedstock increases in to the market in August.
July nylon 6,6 virgin polymer contract prices finalised at €2.70-2.77/kg FD (free delivered) NWE.
($1 = €0.82)
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