Nylon filament prices increased this week as producers raised their offers in China due to high cost pressure. However, the hike was limited by modest buying interest as most downstream producers had ample materials resulting in not strong demand for nylon filament. Coming week, it is expected that nylon prices will remain high but the increase likely to be modest.

Nylon Chain: Benzene fall to six-week low [ 01 Feb, 2010]

Prices of benzene prices slumped significantly across Asia, Europe and USA receding back to six weeks influenced by sluggish crude oil prices. In Southeast Asia, supply was ample as demand from end-users has been met in Q1. Caprolactam prices slid in Asian markets as benzene prices declined dramatically on increased supply.

In China, domestic spot prices softened throughout this week although supplies were still tight amid strong demand. As caprolactum market softened, nylon chip producers’ prices remained stable due to overall supply tightness. However, prices are hard to increase due to dip in trading volumes due to approaching of Lunar New Year holidays. Nylon filament yarn producers in China raised their prices despite softening of feedstock cost. However, demand was slowing down and poor buying interest from textile market led to insufficient momentum in price hike.

Source: YnFx.com

USA - DSM buys full ownership of Ga. nylon plant [ 07 Jan, 2010]

Royal DSM NV has acquired full ownership of a nylon 6 resin plant in Augusta, Ga. DSM, based in Heerlen, the Netherlands, previously had operated the plant as Nylon Polymer Co. LLC, a joint venture with carpet maker Shaw Industries. Terms of the deal were not disclosed.

DSM will incorporate the plant into its DSM Engineering Plastics unit, which is based in Evansville, Ind. Akulon-brand nylon 6 made in Augusta is used in automotive parts, luggage, electronics, packaging films and sporting goods.

Fully owning the Augusta plant “represents a major expansion of our polymerization capabilities in the Americas,” DSM EP Americas President Koen Devits said in a Jan. 7 new release. “It helps us to fully exploit our strong backward integration at the Augusta site.”

For DSM, it’s the second nylon transaction in less than a year. In June, the firm announced it would swap its Xantar-brand polycarbonate business for the nylon operations of Mitsubishi Chemical Corp. of Tokyo by the end of 2009. The deal gave DSM access to nylon 6/6/6 resin for the first time.

DSM also in 2009 opened its first nylon 6 resin plant in China.

Source: Plastics News