21 May 2013 16:21 [Source: ICIS news]
LONDON (ICIS)--Early nylon 6 May contract price settlements have been reached at a reduction of €0.02-0.03/kg ($0.03-0.04/kg) because of weak demand and oversupply, according to several buyers on Tuesday.
This is in spite of a €64/tonne increase in the upstream May benzene contract price.
The majority of contract negotiations are ongoing, and producers are yet to set firm price targets.
Some buyers and a seller said that the oversupply of nylon 6 has been caused by reduced demand in Asia for caprolactam (capro).
Nylon 6 demand in May is around 10% below the same month in 2012, according to market estimates. The fall in consumption has been caused by negative macroeconomic conditions limiting consumer purchasing power.
The major end-use fibre and automotive markets have been equally affected by the weakness in general economic conditions.
Southern Europe has been more heavily affected than Northern Europe because of its greater exposure to the euro debt crisis.
($1 = €0.78)
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