11 June 2013 16:53 [Source: ICIS news]
LONDON (ICIS)--European nylon 6 June contracts are widely expected to finalise at a rollover because upstream costs decreases were not significant enough to affect the markets, sources said on Tuesday
“On nylon it's going tough, but I [think] a rollover should be accepted,” a nylon 6 buyer said.
Nevertheless, no settlements have yet been reached. An €11/tonne ($15/tonne) fall in the upstream benzene June contract price was not significant enough to have an impact on contract negotiations, particularly as the fall is not expected to be passed through to the caprolactam (capro) market. Capro is downstream of benzene and the feedstock for nylon 6 (or polyamide 6).
“Negotiations seem to be very easy at a rollover, negotiations won't take long. Capro is another issue. Benzene went up €64/tonne in April to May, [and in] May to June it was down €11/tonne, so +€53/tonne [cost increase over the two months]. We want to compensate loses, so my target is +€25/tonne [in June capro contract negotiations],” an integrated nylon chain producer said.
The majority of players see market fundamentals as broadly unchanged from May. Demand in June remains weak because of poor macroeconomic conditions, which have limited consumption in the end-use fibre and automotive markets.
($1 = €0.75)
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