EPCA '13: Europe capro and nylon producers seek earlier contracts
08 October 2013 18:00 [Source: ICIS news]BERLIN (ICIS)--Several European nylon and caprolactam (capro) producers independently said on Tuesday that they are attempting to settle contract prices earlier in the month.
Producers said on the sidelines of the 47th Annual European Petrochemical (EPCA) meeting in Berlin, Germany, that they would like to see contract settlements behave more logically, with capro contracts being settled close to the monthly benzene contract, and nylon contracts settling after capro.
One producer said that it has already been successful in moving its monthly settlements to the beginning of the month.
Other producers are also attempting to move contract pricing earlier in the month. So far this has met with mixed results. One producer said that it has struggled to find consensus from its customers on the basis and structure of settlements earlier in the month.
“[We’re] definitely trying to push contracts earlier. So far there’s not a common assumption on what this early settlement should be,” a producer said on the sidelines of EPCA.
Under the current system, the upstream benzene contract is typically settled on the last day of the preceding month. However, capro and nylon contracts are settled towards the end of each month, and on occasion drag out into the following month.
“I do see over the last months the nylon price [negotiations] taking longer – that period [of negotiations] has been extended. Doesn’t necessarily relate to the market – it has delays on the whole chain,” a producer said on the sidelines of EPCA.
Typically nylon contracts settle before capro and are used in capro negotiations.
The EPCA meeting runs 5-9 October.
($1 = €0.74)?xml:namespace>By: Mark Victory+44 208 652 3214
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