05 March 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European nylon 6,6 February contracts have rolled over from January, as producers’ needs to restore margins were counterbalanced by oversupply and weak demand, sources said on Tuesday.
Producers had been targeting price rises of up to €0.15/kg ($0.19/kg) in order to re-establish margins against the upstream benzene contract price.
Nevertheless, weak demand caused by poor macroeconomic conditions reducing consumer purchasing power has consistently prevented producers from increasing nylon 6,6 prices.
Nylon 6,6 contract prices have been unmoved since July 2012. Producers are now targeting heavy increases for March - again of up to €0.15/kg . Buyers are targeting a minimum of a rollover because of weak demand.
Although automotive demand is highly fragmented by geographical location and end-use, sources estimate that consumption from vehicle manufacturers is around 15% lower year-to-date in 2013 than compared with the same period last year.
Automotive demand is higher for premium vehicles – driven by exports to Asia on the back of upward social mobility. Premium automotives have been shielded from the general economic downturn because of their exclusivity and lower availability.
Virgin polymer nylon 6,6 February contract prices finalised at €2.70-2.78/kg FD (free delivered) NWE (northwest Europe).
($1 = €0.77)
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