19 February 2013 17:40 [Source: ICIS news]
LONDON (ICIS)--Several European nylon 6,6 producers are targeting February contract price increases of up to €0.15/kg compared with January because of the need to restore margins against high upstream benzene costs, sources said on Tuesday.
Nylon 6,6 can be produced either from adipic acid – which is downstream of benzene – or from adiponitrile via butadiene (BD).
Although the February benzene contract fell significantly compared with January, during the period from July 2011 to February 2013 benzene contract prices have increased by €286/tonne ($381/tonne).
During the same period, BD contract prices have fallen substantially, dropping €1,135/tonne.
Between July 2011 and January 2013, nylon 6,6 virgin polymer contract prices have fallen by €0.20-0.32/kg.
Solvay Polyamide and Intermediates announced in a press release on 19 February 2013 that it will target price increases on its European Stabamid nylon 6,6 polymer range by 5% with immediate effect, or as contracts allow.
The company attributed the price rise to “a significant and continuous increase in costs of major raw materials – namely benzene".
Nylon 6,6 buyers are targeting between a rollover and price decrease for February, arguing that the supply and demand picture is mixed, depending on end use and geographical region, and that small- and mid-sized automotive demand is too weak to justify a price increase.
($1 = €0.75)
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