Nylon 6 prices have slightly risen in the past weeks, over a new rebound of caprolactam prices. With margins melting at nylon plants, production levels may be lowered whereas material costs will further climb.
Nylon prices are staying very firm in China, having slightly risen in the past weeks over a new jump of raw material costs.
Maintenance operations at caprolactam plants are resulting in a rise of CPL prices, now reaching 14,300 yuan per metric ton and up 3% in a single week.
Demand for nylon 6 fibers remains however weak, over a lack of positive anticipations in the textile industry.
As a result, nylon 6 prices have only gained 200 yuan per MT in four weeks or less than 1%.
Prices had sharply fallen in the second part of last year before stabilizing and bottoming out after lunar year holidays.
Nylon chip capacities have been significantly raised in the last months, pressuring prices as a consequence.
Confronted with lower margins at nylon 6 plants, filament producers may be expected reducing their operating rates in order to raise their prices in line with the rebound of CPL prices.
As a result, nylon 6 prices should not decline in the coming period.
Source: Emergingtextiles
