Europe nylon 6 March contracts rise €0.03/kg on margin recovery

01 April 2014 23:59 Source:ICIS News

LONDON (ICIS)--European nylon 6 March contract prices settled at an increase of €0.03/kg on average, depending on starting point, buyers and sellers confirmed on Tuesday.

The increase was a result of high demand and the need to recover margins.

The spread between nylon 6 and feedstock caprolactam (capro) contract prices has fallen by €22-35/tonne between November and February, following a period of recovery during most of 2013. The spread between cyclohexane (CX) further upstream and capro has fallen by €77-90/tonne since November. The CX March contract price fell by €52/tonne, while the capro March contract was not fully confirmed at time of writing.

Nylon 6 to capro to CX price spread (€/tonne)

 

Capro contract FD NWE

Nylon 6 virgin polymer contract FD NWE

Nylon 6/capro Spread

CX contract ex-works

Capro/CX spread

November

€1,828-1,855/tonne

€2,020-2,140/tonne

€192-285/tonne

€999/tonne

€829-856/tonne

December

€1,868-1,885/tonne

€2,050-2,140/tonne

€182-255/tonne

€1,108/tonne

€760-777/tonne

January

€1,913-1,917/tonne

€2,070-2,190/tonne

€157-273/tonne

€1,150/tonne

€763-767/tonne

February

€1,963-1,977/tonne

€2,120-2,240/tonne

€157-263/tonne

€1,211/tonne

€752-766/tonne

Nylon demand for 6 has been strong throughout March, on the back of pre-buying in anticipation of a heavy turnaround schedule upstream during the second quarter of the year, and macroeconomic recovery.

Nylon demand in March has been estimated by market sources at up to 15% above the same month in 2013.

The European nylon 6 virgin polymer price for March finalised at €2.15-2.27/kg FD (free delivered) NWE (northwest Europe).


By Mark Victory