17 December 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Nylon 6,6 December contract prices have settled at a rollover, buyers and sellers confirmed on Tuesday.
Coupled with weak seasonal demand, a rollover in the December butadiene (BD) contract price has counterbalanced a €109/tonne rise in the benzene December contract price.
Nylon consumption is falling – estimated at up to 25% below November volumes – because of the short working month and year-end destocking.
Typically players reduce inventories in December to lower working capital on year-end balance sheets.
Demand is above December 2012 levels, though, because inventories have been rationalised through most of the year, leading to order volumes being more evenly distributed throughout 2013 as buyers purchase on a hand-to-mouth basis.
Nylon 6,6 can be manufactured either from adipic acid (ADA), which is downstream of benzene, or adiponitrile (ADN) via BD.
European nylon 6,6 virgin polymer December contract prices were agreed at €2.70-2.78/tonne FD (free delivered) NWE (northwest Europe)
($1 = €0.73)
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