Nylon or polyamide markets slump on lackluster sentiment

Nylon or polyamide chip markets slumped in March amid weakening prices in the raw material caprolactam (CPL) markets. In China, nylon chip prices were lowered despite balanced supply and firm demand in the market that month. The average run rate in the country was at 58%. Downstream units made more procurement due to cheap prices, however, the overall mood was cautious. Offers for Taiwan-origin chips were down by 7.2%. In China, bright conventional spinning nylon-6 chips price fell by 13.8% as compared to February while semi-dull chips offer declined by 14% on the month.

Nylon filament yarn prices weakened in line with falling prices in the nylon chip and CPL markets in March. The prices of FDY spec yarn were down while that of DTY were also lowered during the month. In China, semi-dull FDY70D/24F fell US cents 2 a kg from the previous month while FDY40D was down US cents 3 a kg.

Caprolactam (CPL) prices in Asia fell further amid sharp drops in the benzene and energy prices in March. In China, CPL prices were lowered as downstream buying was still lackluster during the month. Downstream units resumed operations in China after the coronavirus outbreak but demand saw very slow improvement. Asian caprolactam spot prices were down 17.1% from the previous month. Sinopec nominated its March contract price at US$1,590 a ton while Fibrant settled its February contract at US$1,610 a ton for liquid goods.

Benzene prices in the Asian markets continued the downtrend in March tracking the new multi-year low prices in the crude oil markets. In the US, benzene prices fell further amid lower prices in the energy markets and the worsening situation in the country due to coronavirus. In Europe, benzene prices continued to fall amid declining Brent prices and weak demand. Asian marker, FOB Korea fell 27.98% in March while US spot prices were down 32.1% on the month. European spot declined by 37.6% on the month.

Courtesy: YnFx Weekly Textile PriceWatch Report