03 September 2013 17:40 [Source: ICIS news]
LONDON (ICIS)--European Nylon 6 September contract prices are expected to roll over despite a €31/tonne ($41/tonne) rise in the upstream benzene September contract price and a force majeure at ATT Polymer’s 46,000 tonne/year nylon 6 plant in Guben, Germany, sources said on Tuesday.
This is because the nylon 6 market is oversupplied following weak demand in August resulting from the holiday period.
Coupled with this, the rise in the September benzene contract price follows a €32/tonne drop in the August contract price, effectively returning the benzene contract price to its July level.
ATT Polymers’ Guben plant was shut down on 23 August after a leakage of highly flammable vapours from a production line. A company source said that it expects to restart the plant soon, but that it is still undergoing technical testing and an exact restart date is yet to be set.
ATT Polymers is a subsidiary of Group Azoty.European nylon players are bullish on September demand, with players forecasting a recovery in construction markets and automotives driven by macroeconomic recovery.
Survey company Markit's eurozone purchasing managers' index (PMI) rose to 51.4 in August from 50.3 in July to reach its highest level in over two years.
($1 = €0.76)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections