Europe May nylon 6 rolls over despite upstream benzene rise

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)

By: Staff Reporter
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly