Downstream nylon market witness price drops in May

Benzene prices in Asia climbed in May on the back of improved demand and rising energy prices. In US, spot benzene prices rose during the month tracking upward movement in crude oil values as well as rising costs for other aromatics products. Europe, benzene prices moved up this month, given rising oil prices and healthy demand. Asian marker, FOB Korea inched up 2.9% in May while US spot prices jumped 0.3% as compared to April. European spot rose 1.5-2% on the month.

Caprolactum prices in Asia moved down slightly in May despite firmer upstream market. In China, CPL offers were kept range-bound amid modest demand during the month. However, buyers were cautious and bought only from hand to mouth. Asian caprolactam spot prices averaged down 1% from previous month.

Nylon or polyamide chip prices saw mixed trend in May amid soft caprolactum cost. In China, bright chip offers were seen rising and those for semi-dull chip were down during the month. Meanwhile, downstream producers were operating at stable rates, thus stimulating demand for chips. Offers for Taiwan-origin chips averaged down 5.6% from previous month. In China, bright conventional spinning nylon-6 chips rose 4.6% from May while semi-dull chips were down 3.5% on the month.

Nylon filament yarn prices declined amid dull demand during the month. Plant operations were cautious due to higher inventory. Market transactions were under pressure as buyers were living hand to mouth with buy-rise mentality. In China, offers for semi-dull FDY70D/24F was down US cents 10 a kg from previous month while FDY40D fell US cents 9 a kg on the month.

However the demand in the nylon market was seen improving since end-May, and it is likely that prices will strengthen in coming weeks.

Courtesy: Weekly PriceWatch Report

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