Cheaper benzene across markets spells cost deceleration

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

Recent Posts

Gebrüder Otto, ITA Augsburg develop towels with 50% recycled fiber

Gebrüder Otto has partnered with the Recycling Atelier at ITA Augsburg to create cotton towels using yarns made from 50%…

16 hours ago

Scientists develop silk threads, turning clothing into power sources

Scientists have found a way to turn textiles into energy sources by creating a unique silk thread coated with a…

16 hours ago

The LYCRA Company launches LYCRA TOP COMFORT fiber

The LYCRA Company has introduced its newest advancement for pantyhose waistbands, called LYCRA® TOP COMFORT fiber.

16 hours ago

Lenzing Nonwovens expands LENZING lyocell dry fiber line

Lenzing Nonwovens has expanded its LENZING Lyocell Dry fiber range with two new cellulosic fibers: a fine dry fiber and…

2 days ago

Avery Dennison unveils Optica for supply chain transparency

Digital identification expert Avery Dennison has launched a new platform designed to increase transparency across brand and manufacturing supply chains.

2 days ago

Aware and Baichuan Resources partner for textile transparency

Traceability platform provider Aware has announced a collaboration with Baichuan Resources Recycling, a leader in recycled polyester, yarn, and fabric…

2 days ago