Nylon Chain Price Forecast In Asia - November 2012

The uptrend in benzene prices would continue to rise in November after gaining almost US$50 in October, but there is a possibility of these increases will translating into cost pressure on downstream segment.

With raw material climbing, caprolactum settlers will push for a further US$100 in November in order to claw back some margin, but buyers will strongly resist such an increase. This more negative view is supported by the development in caprolactum spot prices which have increased only US$40-80 over the course of October. Over the past few months caprolactum producers have begun to offer extended payment terms (60-90 days) to Taiwanese buyers in return for higher settlement prices and secured volumes.