27 August 2013 23:59 [Source: ICIS news]
Prices are at €2.75-2.78/kg ($3.67-3.71/kg) FD (free delivered) NWE (northwest Europe).
One buyer said: “The situation is more or less a rollover.”
BASF declared force majeure on European nylon 6,6 on 7 August.
While August demand is lower than it was in July because of holiday absences, demand has seen a slight pick-up recently, providing further support to a roll over in prices.
“Demand is picking up unexpectedly, and we forecast that the second half will be better than the first half of 2013. Less availability and better demand is helping nylon 6,6 to be stable, even if there has been a reduction on butadiene.”
Demand and margins so far this year have been poor because of weak macroeconomic conditions. While the market remains cautious, sentiment has improved in line with a gradually improving economy.
“It is tighter than expected,” the buyer said. It said its August demand has been softer compared with July, but attributed this to holidays.
“We expect a relatively good month in September after such a bad second quarter and start to the third quarter, because people are going to buy - they have low inventories. But, if our customers don't sell reasonable volumes in September, we could have a bad fourth quarter.”
“We're receiving orders already for September,” the producer added. “It seems customers are eager to buy -and it seems there will be a rollover on both [nylon 6 and nylon 6,6] for September. It should all be stable.”
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($1 = €0.75)
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