Europe nylon 6 buyers target July contract price fall

09 July 2013 17:01  [Source: ICIS news]

LONDON (ICIS)--Europe nylon 6 buyers are targeting the full upstream July benzene reduction of €67/tonne ($86/tonne) in nylon 6 July contract prices because of weak demand, they said on Tuesday.

This was attributed to poor macroeconomic conditions limiting consumer purchasing power coupled with the approach of traditional end-user summer holiday outages.

Several buyers said that nylon demand in July 2013 than July 2012.

Although most buyers said that it was too early to predict the exact extent of any year-on-year consumption fall, some market estimates put the year-on-year fall in buying interest in July at 5%.

The downstream carpet sector has been most heavily affected because of the fall in construction levels driven by poor general economic conditions.

One buyer manufacturing for the carpet sector said that July spot cargoes have fallen in price from €2.06/kg FD (free delivered) NWE (northwest Europe) in early June to €2.00/kg FD NWE because of low buying interest and that it expected contract prices to follow a similar trend.

Nylon 6 producers are aiming to limit July contract price falls as much as possible, arguing the need to improve margins.

($1 = €0.78)

By: Mark Victory
+44 208 652 3214

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