CPL, nylon 6 markets on downward spiral despite recovering benzene

In the first week of November, caprolactum (CPL) prices in Asia fell despite a recent rebound in benzene prices. In China, CPL prices were assessed lower due to lackluster demand during the week. Market supply was higher in the week with average plant run rate increased to 82.4%. However, a few plants had plans to shut operations which could lower the supply in the coming weeks. Overall, CPL prices will slip in the coming weeks.

Nylon or polyamide chip prices moved down further in tandem with bearish CPL markets during the week. In China, nylon chip offers were heard down amid modest demand as the markets witnessed losses during the week. Demand was low as downstream buyers operated at lower rates recently. And as a result, buying was on need-to-basis. Overall, nylon chip prices may weaken in the coming weeks.

Benzene prices in Asian markets rebounded in the first week of November buoyed by higher energy prices, despite higher supply. In the US, spot benzene markets were bullish amid increasing crude oil prices in the week, as optimism grew regarding a partial resolution to the US-China trade war. In Europe, benzene prices moved up due to recent gains in the crude values, however, the prices were capped by increasing supply in the markets that week.

Courtesy: YnFx Weekly Textile PriceWatch Report