06 November 2012 19:23 [Source: ICIS news]
HOUSTON (ICIS)--US polyamide producer Honeywell has joined BASF in seeking price increases for its nylon 6 material, market sources confirmed on Tuesday.
Honeywell is seeking an additional 8 cents/lb ($176/tonne, €137/tonne) for both its nylon 6 polymer and its feedstock, caprolactam (capro), globally.The current ICIS-assessed domestic price for nylon 6 injection moulding grade in bulk sits at $1.70-1.96/lb, after having moved down from $1.86-$2.16/lb, on lower costs and market demand.
The ICIS price assessment for nylon 6 is generally is less fluid than a spot price but less rigid than a contract price.
BASF is seeking an additional 10 cents/lb for its nylon 6 material.
Both companies have cited the higher cost for feedstock as the reason for the proposed increases. Also, both proposed price increases are to become effective on 5 November, or as contracts allow.
The November contract price for benzene is $4.90/gal, which is 11.4% higher than the October contract price. Benzene is a feedstock for caprolactam.
Since January, the contract price for benzene has risen by 32.4%.
Benzene spot prices were well above the $5.00/gal mark in October, with a record high trade achieved at $5.35/gal FOB (free on board).Just how much of either proposal grabs traction remains to be seen as demand for nylon 6 has been steady, but is projected to decrease as the year draws to an end.
Some market participants also said that while benzene costs have increased, now is not the time to seek an increase given demand.
($1 = €0.78)
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