MUMBAI (Commoditiescontrol) – Nylon filament yarn prices soared in the week ended 25 November as raw material nylon chip and caprolactum cost surged, which were eroding yarn makers’ margins for long. Thus, producers hiked prices and were also cutting run rate to balance supply/demand fundamentals. In China, FDY70D/24F SD prices spiked to US cents 7 to US$2.46 a kg while FDY40D surged to US$2.67 a kg, up US cents 5). DTY 70D/24F prices jumped US cents 6 to US$2.60 a kg. Monofilament 30D prices marched to US$2.53 a kg, up US cents 3. Nylon staple fiber 1.5D prices were also raised US cents 13 to US$2.24 a kg.
What buoyed nylon filament markets to justify this hikes.? Cost. Nylon feedstock, benzene prices were up across regions with Asian market leading the rise. In SE Asia, term discussions indicated higher prices but discussions mitigated a weekly surge in spot number. In US, spot benzene moved higher as participants eyed Asian imports while domestic derivative styrene, held at Asia netback.
The FOB Korea marker jumped US$32.50-35.00 on the week with FOB Korea at US$731 a ton and CFR Taiwan at US$745a ton. The CFR India was up US$35 at US$746.50-747.50 a ton. US spot benzene for November assessments was up US cents 3 to US cents 234 a gallon on FOB basis.
This helped derivative caprolactum (raw material to produce nylon filament) prices to march north given healthy demand and tight supply. Produces have been trimming operating rates to balance demand-supply fundamentals. Caprolactum prices gained US$30-50 on the week with SE and FE markers at US$1,450-1,500 a ton. In China, spot offers jumped US$80 to US$1,950 a ton.
Meanwhile, Taiwan‐origin high-speed nylon chip offers were hiked US$80 on the week to US$1,740 a ton. Nylon filament is also drawn from nylon chips.
(By Commoditiescontrol Bureau; +91-22-40015522)