02 October 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European nylon 6 September contract prices have settled at an increase of €0.02-0.05/kg ($0.03-0.06/kg), buyers and sellers said on Tuesday.
Although some players said that their contract prices had rolled over from August, they remained within the above published range.
Prices increase for nylon 6 (or polyamide 6) had been necessary to recover margins lost against upstream benzene across the third quarter, buyers and sellers confirmed. The September benzene contract price was €73/tonne above the July level. During the same period, nylon 6 contract prices have decreased by €50-80/tonne.
Typically nylon contract prices are settled at the end of the month, with material delivered free of pricing prior to the settlement.
Nylon 6 producers said that margins remain unsustainably low. Nevertheless, the majority of players are expecting a rollover of prices in October because of weak demand.
Consumption in the fourth quarter is predicted to be up to 30% below the fourth quarter of 2011, depending on end-use application – with the end-use automotive market expected to be the most severely affected. This is the result of bearish macroeconomic conditions, which have reduced consumer purchasing power.
Some players said that buyers are already beginning to enter year-end destocking patterns, which would not traditionally begin until November.
($1 = €0.78)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|