Nylon filament yarn markets were firm, supported by the rising chip market. Demand was almost flat as operations in the terminal sector were cautious. The warp knitting, weaving and AJ covering sectors operated at a 70% run rate. Meanwhile, circular knitting mills and lacing mills ran at 45% capacity. The nylon FDY market was firm on upward feedstock despite thin demand, while the nylon DTY market was favourable amid modest demand and firm feedstock, with producers seeing some margins. Cord fabric values increased despite demand from the tyre sector being thin. Discussions for staple fibre 1.5D were up as bright chip sentiment was supportive.
Offers for nylon FDY70D/24F SD were hiked this week to 23.50-24.00 yuan a kg (US$3.45-3.52 a kg, up US cents 3), while DTY70D offers increased to 24.00-25.40 yuan a kg (US$3.52-3.72 a kg, up US cent 1 at the upper end). Cord fabric 1,260D price offers were raised to 27.50-28.00 yuan a kg (US$4.03-4.10 a kg) while monofilament 30D prices were up at 24.50-25.50 yuan a kg (US$3.59-3.74 a kg), both up US cents 8. Nylon staple fibre 1.5D prices were also raised to 20.80-21.50 yuan a kg (US$3.05-3.15 a kg, up US cents 5).
Prices in India remain unchanged at the moment in the Surat market. Overall, nylon yarn markets are expected to hold firm on cost support. SD filament prices rolled over at INR280 a kg (US$3.89 a kg, down US cents 5 due to the weak INR) in the Surat market.
Nylon chip prices gained in Asia as the cost kept galloping ahead, while the overall market was favourable. Offers were raised, and suppliers stuck to offers citing high feedstock costs and a low downstream inventory, while downstream buyers were cautious to follow. Taiwan‐origin SD high-speed nylon chip prices gained US$20 at US$2,470-2,500 a ton. In China, offers for conventional nylon 6 chip were hiked US$75 to US$2,770-2,845 a ton while SD high-speed chips offers were up US$30-45 to US$2,770-2,860 a ton.
In Europe, nylon 6,6 August monthly prices were stable to firm on continued supply pressure. Prices moved in line with the average feedback and lack of availability. There was an expectation that the supply constraints will remain a challenge this year for market players. August contracts for nylon 6 virgin polymer were at euro 2.28-2.43 a kg FD NWE while nylon 6,6 virgin polymer rose euro cents 5 at the low end, bringing the range to euro 3.98-4.34 a kg FD NWE.
In the US, September nylon prices increased US cent 1 from August on higher settlements for September benzene contracts. Prices were also facing upward pressure amid ongoing feedstock caprolactam shortages. Nylon 6,6 prices remained at historic heights due to severe supply constraints for adiponitrile in the global market. Injection moulding nylon 6 was assessed at US$1.23-1.28 per pound from US$1.22-1.27 per pound in the previous week.
Caprolactam markets in Asia were in tight supply and prices picked up thereby. Mainstream values for liquid materials in China were raised as offers from producers were hiked despite demand being flat. Asian markers inched up US$10 at the lower end with SE and FE Asia at US$2,130-2,160 a ton. In China, spot prices for liquid goods jumped to 17,600-17,800 yuan a ton (US$2,580-2,610 a ton) while flake goods were at 17,800 yuan a ton (US$2,610 a ton), both up US$30-45.
In Europe, caprolactam August contracts were agreed at varying decreases, with most drops not quite in proportion to the benzene drop, which was discussed earlier in the month. The feedstock benzene contract fell in August and the September contract also decreased. Downstream nylon 6 prices either rolled over or saw modest increases in June. The upstream cyclohexane contract for September softened due to decreases in the benzene settlement. August contracts settled down euro 10 at euro 2,272-2,433 a ton FD NWE. In the US, the September cyclohexane contract settled at US cents 306 per gallon FOB US Gulf, up US cents 9 compared to the previous month.
