04 June 2013 23:59 [Source: ICIS news]
By Renee Lawrence
LONDON (ICIS)--European May nylon 6 contracts have rolled over, buyers and sellers said on Tuesday, in spite of a €64/tonne rise in the May benzene contract prices.
Weak demand has meant that nylon 6 (or polyamide 6) producers have been unable to pass benzene cost increases through the polyamide chain.
Producers had been asking for a price increase in line with May benzene but weak demand and strong resistance from buyers who were seeking a reduction meant that a price hike attempt was not successful, sources said.
One major nylon 6 consumer said that it would like a decrease for June contract business as it is able to get competitively-priced material from eastern Europe.
The buyer said it is not in a hurry to settle its June contracts because of the easy availability of spot material. Still, European nylon sellers are keen to stave off price erosion by seeking a minimum rollover in June, even though the raw material benzene became cheaper to use this month.
The European June benzene contract has been settled at €1,045/tonne FOB (free on board) NWE (northwest Europe), down by €11/tonne ($15/tonne) from the previous month.
The European nylon 6 virgin polymer contract price for May is unchanged at €2.10-2.22/kg FD NWE, according to ICIS.
($1 = €0.76)
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