Europe nylon 6,6 July contracts fall on low automotive sector demand for third consecutive month

Author: Stephanie Wix

2019/08/07

LONDON (ICIS)--European nylon 6,6 contract prices for July have settled at decreases of €0.05/kg on the back of persistent low demand in the downstream automotive sector.

Contract prices have fallen for the third consecutive month.

Summer market activity remains quiet and some buyers skipped negotiations for July volumes due to high stock levels.

The price range for nylon 6,6 virgin polymer stands at €4.13-4.27/kg FD (free delivered) NWE (northwest Europe) for July.

Supply is stable to ample, depending on the player, but concerns remain for the fourth quarter due to the Butachimie planned turnaround for key nylon 6,6 feedstock adiponitrile (ADN) in Chalampe, France.

The facility is the largest global ADN unit and the maintenance was originally planned for the second quarter but it was postponed.

The plant will conduct the maintenance from late September until December.

However, if demand remains low there may not be a significant impact in the market.

Buying interest remains low in the automotive sector, and as a result this has gradually left more material available in the market this year.

Demand is not expected to show signs of improvement until 2020.

The identity of the third party buyer of Solvay's nylon business acquired by BASF is yet to be announced.

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Nylon 6,6, also called polyamide 6,6, is mainly used in engineering plastics and industrial filament applications. Nylon 6,6 is a general-purpose extruded grade engineering resin and it is used for car parts in the automotive industry.

Pictured: A Volkswagen production plant in Zwickau, Germany
Source: Jens Meyer/AP/Shutterstock