13 November 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European nylon 6 November contract prices have finalised at a reduction of €0.10/kg ($0.13/kg) because of weak demand, buyers and sellers confirmed on Tuesday.
The fall in prices comes in spite of a €34/tonne increase in the upstream benzene November contract price.
“Nylon  is weak, it seems have to reduce to €2.05-2.10/kg at the low-end. Poor demand is the only reason, poor macroeconomics,” a nylon 6 producer said
Buyers have begun the process of year-end destocking, in order to lower working capital on end-of-year balance sheets. Nevertheless, the key cause of weak demand is negative macroeconomic conditions, which have reduced consumer purchasing power and limited demand in the auotomotive and fibre markets.
The downstream carpet fibre sector has been the most severely affected by the low consumption.
Some players estimated that demand in November 2012 will be up to 15% below November 2011 levels.
“November and December were already slow in 2011, in November 2012 [demand] is 10-15% down compared with [November] 2011, compared to a normal year [it’s] minu 25% to minus 30%,” a nylon compounder said.
A minority of sources predicted that plants may now be temporarily idled because of weak margins, but this was not confirmed at source.
“If there's weak demand we think producers will shut down - we think this will happen in the next month,” a nylon buyer said
November nylon 6 (or polyamide 6) November virgin polymer prices finalised at €2.05-2.22/kg FD (free delivered) NWE (northwest Europe).
($1 = €0.79)
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|
Asian Chemical Connections