Feedstock benzene prices in Asian markets were largely stable-to-up in the week ended 18th January 2019 ahead of the Lunar New Year holidays. In the US, spot benzene prices climbed for a second consecutive week after sinking to multiyear lows around the New Year. In Europe, spot benzene prices declined in the week despite higher upstream prices as the market was thinly traded with February prices in contango.
Caprolactum (CPL) prices in Asia were flat that week supported by slightly firmer benzene prices during the week. In China, CPL prices were largely unchanged in the week amid quiet sentiment before the Lunar New Year holidays. However, the average plant run rates were increased to 87.8% that week. Overall, CPL prices may remain range-bound in coming weeks.
Nylon or polyamide (Nylon-6) chip prices were range-bound that week underpinned by stable CPL prices. In China, offers for nylon chip prices rolled over while market performance was slowly improving during the week. However, it is likely that downstream buying interest will decline with Lunar New Year approaching. Overall, nylon chip prices are expected to soften in coming weeks.
Nylon filament yarn (NFY) prices were stable-to-up amid firm caprolactum and nylon chip markets that week. Downstream demand was seen improving slightly on firming feedstock, while production was slightly above break‐even level. Overall, nylon yarn prices will continue to remain steady in coming weeks.
Courtesy: Weekly PriceWatch Report
