18 July 2011
Nylon prices began recovering on China's spot market in the past four weeks, in line with a rebound in caprolactam prices. With demand remaining very weak, however, there are indications that the rise in prices could rapidly end.
Nylon/Polyamide fiber prices slightly recovered in the last weeks in China, over a continued rise in raw material costs.
Average price for benchmark DTY 70D/24f was up 600 yuan per metric ton (10 cents per kilo) in the last four weeks, a rise of 1.75%.
Nylon prices had previously fallen, in line with a general drop in fiber prices on the global market.
The rebound in price offers was actually triggered by a sharp increase of spot caprolactam prices in Asia.
The lack of effective demand from downstream users in this period of the year in China may however limit any new increase in CPL spot prices.
Contract prices are less declining than spot prices, indicating a lack of confidence from largest caprolactam makers.
On China's spot markets, CPL rose 1,700 yuan per metric ton in the last four weeks, or 6.5%.
The nylon/CPL spread fell 600 yuan or 7.5%, as a consequence.
Nylon producers may have to accept lower margins until demand will rebound later this summer.