Nylon Chain: Values Declining With Benzene Dropping Further [ 01 Apr, 2013]
Benzene markets were dull in Asia and prices declined amid bearish market sentiment despite the energy complex gaining strength. US spot benzene dipped significantly attributed to weaker global sentiment as Asian and European prices were also lower. In Europe, benzene markets were in the red, as bearish sentiment continued to penetrate global markets.
Asian caprolactum markets softened as demand weakened amid on inventory in downstream and upstream benzene markets showing sign of rapid softening. Sellers were more active in selling by lowering ideas, mostly for small volume. Markets saw limited offers and bids. As caprolactum prices softened, nylon chip markets also headed south, but downslides were mild in a narrow range. Producers reduced run rates slightly on high inventory and cautious downstream demand.
Nylon Chain: Benzene price drops further [ 25 Mar, 2013]
Benzene prices declined in Asian markets unable to sustain a rebound that began early in the week. In Europe, benzene sentiments were bearish ahead of the second quarter while US market dropped to its lowest point since September 2012 earlier in the week. European benzene availability was looking ample.
Asian caprolactum markets softened as demand weakened due to high inventory in the downstream segment. Prices also eased due to weak raw material while sellers were more active in selling. The drop in caprolactum prices resulted in mild a downswing in nylon chips market. However, downstream nylon yarn makers were also cautious in buying expecting further decline and mostly consumed stocks. Chips producers reduced run rates slightly on high inventory, while downstream demand was cautious.
Asian nylon filament yarn markets lost cost support given the weakening of caprolactum and nylon-chip values. Downstream buyers from textile mills also showed lesser interest to stock up, holding skeptical view over market as raw materials were falling. NFY producers had high inventory and weak sale/production ratios.