Nylon filament yarn markets continued to remain supported by hikes in caprolactam and nylon chip costs. Demand was stable as textile producers operated at stable run rates with good liquidity of FDY, DTY and POY. Nylon-6 FDY prices picked up on the back of higher chip prices and modest demand while nylon-6 DTY markets were firm on high feedstock cost although demand was tepid. Offers for nylon FDY70D/24F SD were raised on the week to 23.30-23.80 yuan a kg (US$3.41-3.49 a kg, up US cents 7), while DTY70D offers increased to 24.00-25.30 yuan a kg (US$3.52-3.71 a kg, up US cents 5-10).
Warp knitting and covering mills also ran at 70% run rates, while circular knitting and lacing mills were at 50% run rates. Cord fabric 1,260D prices offers were up at 27-27.50 yuan a kg (US$3.96-4.03 a kg, up US cents 10), while mono filament 30D prices were stable at 24-25 yuan a kg (US$3.52-3.66 a kg). Nylon staple fibre 1.5D prices were also raised to 20.50-21.30 yuan a kg (US$3.00-3.12 a kg, up US cents 6 on the week).
In India, the nylon filament market was slightly firm, pushing up nylon yarn prices in the second half of August. Firm raw material kept prices stable this week in the Surat market. 20 SD filament prices rolled over at INR280 a kg (US$3.95 a kg) in the Surat market.
Nylon chip producers in Asia hiked their offers amid favourable upstream caprolactam markets, while trading activities followed up. Demand was decent as nylon yarn makers operated at high rates given good margins, while buyers were more active on a buy-rise sentiment. Demand from the cord fabric market was also favorable with buyers willing to purchase amid modest profits. Engineering plastics and film units also showed some demand. Thus, chip market may head north to ease operating pressure.
Taiwan‐origin SD high-speed nylon chip prices inched up US$10-30 at US$2,450-2,480 a ton. In China, offers for conventional nylon-6 chip were hiked US$60 to US$2,695-2,780 a ton, while SD high-speed chips offers up US$75 at US$2,740-2,810 a ton.
In Europe, nylon 6 monthly contracts rolled over in August on unchanged market conditions. There was a separate mention of a nominal decrease, but the majority of players witnessed stable pricing for the month. There was also mention of downstream shutdowns – which implies that contractual requirements were reduced. August contracts for nylon 6 virgin polymer rolled over at Euro 2.28-2.43 a kg FD NWE and nylon 6,6 virgin polymer were in the range of Euro 3.93-4.34 a kg FD NWE.
Caprolactam spot prices continued to rally in China amid modest demand. Mainstream values for both liquid and flake goods jumped in East China, while producers in the north issued higher offers. Offers in other Asian markets were flat. Taiwan’s China Petrochemical Development Corporation settled its September contract higher than August. Increased raw material costs and tight supply in the region are expected to support the higher price. Asian markers rolled over, with SE and FE Asia at US$2,120-2,160 a ton. In China, spot prices for liquid goods were up at 17,300-17,600 yuan a ton (US$2,535-2,580 a ton) while flake goods were at 17,600 yuan a ton (US$2,580 a ton), both up US$75. Taiwan’s China Petrochemical Development Corporation settled its September contract price at US$2,170 a ton CFR Northeast Asia, up US$15 from August.
In Europe, caprolactam contract talks dragged on, with some discussions lasting until the end of the month. Following the fall in benzene August contract price, there was mention of small decreases and separate mention of stable pricing for monthly caprolactam contracts. Supply and demand conditions were largely unchanged. July contracts were at Euro 2,282-2,443 a ton FD NWE.
Benzene prices lost the upward momentum in Asian markets and fluctuated slightly in the week. Cargo-holders were unwilling to reduce prices, seeing a decline in inventories and fewer arrivals. Inventories at shore tanks along east China fell 1.43% on the week to 158.7 kilo ton. However, demand also remained bearish as operating rate in the phenol sector slipped to a yearly-low. Buyers were reluctant to purchase spots due to upcoming delivery period at month-end, thus hampering trading activity. Spot benzene prices edged down on the week with CFR China at US$894.50-895.50 a ton, down US$1 and FOB Korea at US$877.17-878.17 a ton, down US$9.33 on the week. Earlier, Japan’s JXTG Nippon Oil nominated its September contract price at US$920 a ton CFR Asia, up US$60 from its August numbers.
In Europe, spot benzene inched up while September contract price settled at a decrease from August. Spot prices rose US$10 on the week, with both FOB Rotterdam and CIF values at US$867.50-868.50 a ton. September contract settled at Euro733 a ton, down Euro9 from August.
In US, benzene spot prices slipped and were assessed wider as trading activity was limited and no deals were heard. September prices were assessed at par with August as there was little activity for the current month. Prompt month spot prices were at US cents 290-296 a gallon DDP, compared to US cents 295 a gallon in the previous week.
