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Falling crude oil sets nylon chain on a freefall

Related Keywords: Benzene price, caprolactum price, crude oil price, nylon chip price, nylon filament price, Nylon price, Nylon yarn price, polyamide chip price

The nylon value chain has lost more than half its values in Asian markets by end 2015 end ever since they were at their yearly peak in May-June. The plunge was triggered by the rapidly falling crude oil prices where in benzene, a refinery product – is closely linked. Caprolactum, a nylon fibre intermediate, is derived from benzene via cyclohexane. Nylon chip, nylon fibre and nylon filament yarn are derived from caprolactum. Thus, the final product costing depends on the movement in crude oil and thereby, benzene markets.

Nylon yarn makers enjoying increased margins despite soft pricing

Related Keywords: benzene prices, caprolactam price, nylon chip price, nylon filament price, Nylon prices, Nylon yarn price, polyamide chip price

Increasing supplies of crude oil from North American shale formations continued to weigh heavily on prices this year, creating a glut in world markets and decreasing demand for oil from the Organization of the Petroleum Exporting Countries. OPEC forecast that its market share would be 5 percent lower by 2018 as shale supplies continued to increase faster than demand. However, OPEC Secretary-General Abdullah al-Badri believes that the 12-member cartel, which pumps a third of the world's oil, prices would recover next year.

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