27 September 2013 03:32 [Source: ICIS news]
Nylon chips prices have risen from $2,630-2,680/tonne (€1,946-1,983/tonne) CFR (cost & freight) China on 3 September to $2,670-2,690/tonne CFR China on 24 September.
Prices of nylon chips have been on an uptrend because key upstream capro prices have been gaining strength on the back of tight availability of imported materials.
By 24 September, capro contract discussions were largely settled at $2,390-2,400/tonne CFR NE Asia, which is $60-70/tonne higher than the August contract settlement.
Despite sharp increases in upstream capro prices, rises in prices of nylon chips had been slow and gradual, according to chip producers.
A $300/tonne margin is required between capro and nylon chips, according to market sources. However, offers for nylon chips at $2,680-2,700/tonne CFR China were met with strong resistance from buyers and quickly dampened trade earlier in September.
Considering the poor performance of downstream yarn sectors, coupled with a prolong period of price stagnation in downstream yarn products, nylon chip producers revised their offers, and managed to secure volumes in September.
Nylon 6 fibres are used extensively in textiles, carpets and industrial yarns.
($1 = €0.74)
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