LONDON (ICIS)--European nylon 6 November contract prices finalised at a reduction of €0.03/kg because of lower upstream costs, buyers and sellers confirmed on Tuesday.
The fall represents approximately half of the upstream benzene November contract price fall of €78/tonne ($105/tonne).
Nylon 6 buyers were unable to secure the full benzene November contract price reductions because of producers’ need to restore margins.
Coupled with this, once it became clear that December benzene contract prices would increase significantly during what is typically a difficult month to pass through cost increases into the polyamide chain, this strengthened producers' resolve.
Typically in December, polyamide chain demand falls because of year-end destocking to reduce working capital on balance sheets and holiday period closures at end-users.
The upstream December benzene contract price rose by €109/tonne compared with November.
The virgin polymer nylon 6 December contract price finalised at €2.02-2.14/kg FD (free delivered) NWE (northwest Europe).