Falling benzene price weakens downstream nylon chain

In the last week, ended on 20th May 2016, benzene prices fell in Asian markets amid thin discussions while supply tightness persisted in SE Asia for June and arbitrage from S Korea to China remained open. However, the prices drop varied sharply across Asian markets, with lowest drop seen in India and highest in Southeast. In US, spot benzene moved higher on bullish views on supply while European benzene market ended quietly with spot price retreating slightly.

Caprolactum markets in Asia were mired in weakness on soft demand while cost support eased with falling benzene values. In China, prices of liquid goods remained flat while solid goods were cheaper.

Nylon chip prices declined slightly during the week, dragged by dismal caprolactum market and anaemic demand. However, the downslide was limited amid normal supply and downstream converters had commenced normal operation.

Downstream makers were cautious to buy raw materials amid low operating intentions, leading to slow liquidity.

NFY prices moderated on the week as markets continued to face weakness on the back of dismal performance in nylon chip and caprolactum markets. However, monofilament and cord fabric prices remained unchanged.

Courtesy: Weekly PriceWatch Report

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