Benzene prices tumble but downstream remained firm

Benzene markets tumbled across regions and prices plunged sharply in Asia on weak demand amid excess supplies. The arbitrage window from Asia to US was firmly shut. In Europe, prices dropped amid demand gaps as it lost demand from styrene market with the benzene-styrene spot spread surging dramatically. In US, the benzene markets saw another decline as export opportunities to Europe were absent with the price spread narrowing.

As benzene prices softened, caprolactam market remained short amid decent demand. In China, low-end offers held stable in domestic spot market. Demand from polymerization units were maintained while nylon textile yarn makers were running at modest capacity, with inventory at around 28 days’ worth. Industrial yarn producers were running at low capacity.

Nylon chip makers held low inventory and maintained offers given the stable to firm caprolactum markets and decent demand. Semi-dull high-speed spinning nylon-6 chip prices rolled over while conventional chips prices retreated slightly. Demand held healthy though chip buyers purchased hand to mouth while some small-size producers may trim operation due to poor margin.

Nylon yarn prices rolled over at firm levels on stable to firm caprolactum and nylon chip prices. Prices of staple fiber and cord fabric were also steady amid rising cost. Downstream converters saw fewer order intakes from May, buying for nylon textile yarn retreated somewhat, although rigid demand remained fair.

Courtesy: Weekly PriceWatch Report