29 January 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European nylon 6 January contracts have settled at a price increase of €0.05/kg ($0.07/tonne), buyers and sellers confirmed on Tuesday.
The rise was the result of a €69/tonne increase in the upstream benzene January contract price.
The full benzene cost increase could not be passed through the polyamide chain because of weak end-use demand.
Views on nylon 6 (or polyamide 6) consumption are varied, depending on end-use application and geographical region. Sources in northern Europe serving the premium automotive market are seeing healthy demand, in line with January 2012 levels.
Sources in other geographical locations and end-use industries, such as non-premium automotives and textiles, are seeing weak demand because of reduced consumer purchasing power.
Some sources estimated that year-on-year demand in January 2013 is 20% below January 2012 volumes.
They added that the approach of the Lunar New Year holiday has limited Asian demand from end-use markets. Asia is a key importer of European finished goods made from nylon.
Virgin polymer nylon 6 January contract prices finalised at €2.10-2.22/kg FD (free delivered) NWE (northwest Europe).
($1 = €0.74)
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