Nylon Price Forecast In Europe and USA - December 2012

US benzene market will structurally remain short and given that the derivative markets are weak and inventories rising, with the financial year0end on the horizon and underlying hydrocarbon prices softening, there is a strong case for believing that benzene prices will correct in the short term. In Europe, export prices for caprolactum from East Europe to Asian markets were at US$2,180-2,220 a ton and deals largely concluded at around US$2,200 a ton. This will change as negotiation for November was yet to conclude and December will remain at bay for some time.

In Europe, in spite of the depressed economies, the supply chain for nylon textile filament appears to be under tight control with suppliers looking forward to a solid run of activity through the year-end. December in expected to show rather less de-stocking than is normally the case. Hosiery will once again take the lead, but most knitting routes will contribute to the activity.

Nylon textile volumes in US are expected to fall back during the holidays. Some nylon fibre producers will take the slower market as an opportunity to rebuild inventory levels. There will be no change in yarn pricing, although nylon 66 polymer prices have increased in November. There appears a willingness to wait until January to determine if any further adjustment is necessary due to raw materials.