Europe July nylon 6 contracts see some slight increases

05 August 2014 23:59 Source:ICIS News

LONDON (ICIS)--European nylon 6 virgin polymer prices have settled €0-0.03/kg higher for July, sources said on Tuesday, as upward pressure from feedstock costs were counterbalanced by sluggish downstream demand.

Several producers reported increase for nylon 6 in the region of €0.02-0.03/kg for July, still short of the full €99/tonne increase seen in the benzene settlement last month.

Elsewhere, however, buyers reported some rollovers for nylon 6 in July amid healthy availability and slower demand into August.

“There has been some margin loss for caprolactam producers,” said one nylon buyer. “Increases are needed but it’s just not possible given the current state of the market in Europe.”

There was also talk of increases as high as €0.06/kg for July material, but these were not widely confirmed. Producers had initially been targeting increases as high as €0.12/kg in order to recoup the full benzene increase in July.

Following a €6/tonne increase for benzene in August, sources reported that some nylon producers are looking for increase of up to €0.10/kg this month in order to recoup lost margins so far in 2014.

“There will be big resistance to any increases this month,” conceded one supplier, adding that it was seeing normal consumption patterns so far for August, despite demand usually tailing off due to the holiday period.

European nylon 6 July virgin polymer contract prices finalised at €2.16-2.25/kg FD (free delivered) NWE (northwest Europe).

By Truong Mellor