08 April 2014 17:01 [Source: ICIS news]
LONDON (ICIS)--European nylon 6,6 producers are targeting price increases of around €15/tonne in April because of upstream cost hikes, they confirmed on Tuesday.
Nylon 6,6 can be manufactured either from adipic acid (ADA), which is downstream of CX, or from adiponitrile via butadiene (BD).
Producers using the BD route argue that rising ammonia prices are adding pressure to increase nylon 6,6 prices.
Negotiations are at an early stage and buyers are yet to set firm targets.
The April CX contract price has been assessed at €1,178/tonne, an increase of €19/tonne from March, following the settlement of the CX second-quarter delta contract.
The European CX second-quarter delta has been fully agreed at €159/tonne, a rise of €3/tonne from the first quarter, because of tight supply.
The April European benzene contract has been agreed at €1,019/tonne, up €16/tonne from the previous month. The benzene contract was agreed at a US dollar concept of $1,402/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the agreed exchange rate of €1:$1.37586.
The monthly CX contract price is comprised of the sum of the CX quarterly delta contract and the monthly benzene contract price and is settled on an ex-works NWE basis.
Nylon 6,6 demand has been increasing because of macroeconomic recovery.
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