US spot benzene prices dropped on weaker downstream demand pulling down prices in Asia, Europe and Latin American markets. US spot benzene prices dropped in the week ended 22 August falling below US cents 500 a gallon mark to begin the week and continued to fall later. Asian benzene marker, the FOB Korea was assessed at US$1,318-1,319 a ton, down US$29.50 week on week. US spot prices dropped US cents 19 on the week, assessed at 481.95-482.05 per gallon FOB USG. In Europe, spot barges were assessed at US$1,385.50-1,386.50 a ton CIF ARA while FOB Rotterdam values were at US$1,395.50-1,396.50 a ton, both down US$42.50.

Caprolactum prices headed down with the fall in benzene market coupled with still weaker demand. In China, domestic spot market prices edged down as Sinopec adjusted down its benzene list price down. Downstream demand for caprolactum from nylon chip market was range bound as run rate at polymerization units were at 74 per cent while nylon yarn makers were running at 62 per cent, providing modest support to caprolactum. In Asia, offers were at US$2,250-2,270 a ton while mainstream discussions were at US$2,250 a ton. Negotiation for high-end material contracts of August were at US$2,300 a ton In China, medium-to-low-end solid caprolactum was traded at US$2,825-2,855 a ton, down US$20 while liquid goods were traded at US$2,810-2,840 a ton, down US$35.

Nylon chip prices fell as cost support from caprolactum markets eased after several weeks of firmness. As caprolactum sentiment weakened more low-priced nylon chips emerged on the market due to poor fundamentals. Nylon chip prices fell in China, with bright conventional spinning nylon-6 chips were priced at US$2,940-3,050 a ton, down US$20-70 from last week. Offers for semi-dull chips similarly fell US$35 at US$3,035-3,130 a ton.

For nylon filament yarn makers, prices slid marginally as cost pressure eased with the fall in prices of caprolactum and nylon chip. Although low priced yarn attracted some replenishing interest, cautious sentiment aggravated with falling raw material prices. In China, semi-dull FDY70D/24F was traded at US$3.57-3.65 a kg, down US cents 3 from last week while DTY 70D/24F was traded at US$3.78-3.98 a kg, down US cents 4 from last week.

Courtesy: YnFx Weekly PriceWatch Report and Daily Textile Prices Service