SINGAPORE ,June 24-Nylon chips producers across Asia are expected to further reduce their operating rates amid weak demand from the downstream nylon textiles industry and falling values of feedstock caprolactam, market sources said on Thursday.
Market sentiment for nylon chips was extremely bearish as most spot buyers adopted a wait-and-see stance and the few who did buy were only securing minimal volumes to cover immediate needs, sources said.
Sales are slow, very slow. I have no idea what price the downstream industry wants exactly, an industry source said.
Nylon is widely used in the manufacture of hosiery, knitted garments, threads, ropes, filaments, nets and tire cords.
Nylon chips spot prices fell by $50-80/tonne (?1-65/tonne) to $2,800-2,850/tonne CFR (cost and freight) China on 22 June amid weak market sentiment, based on ICIS data.
In China and Taiwan, the feedstock caprolactam market continued its downward spiral as traders continued to close deals at lower prices with values tumbling to a three-month low this week.
Prices were assessed $50-170/tonne lower at $2,350-2,380/tonne CFR Taiwan, $2,330-2,380 CFR China and $2,350-2,450/tonne CFR NE Asia on 23 June.
Caprolactam is an intermediate primarily used in the production of nylon 6 fibres, plastics and other polymeric materials.
Poor sales had forced Taiwan s Li Peng Enterprise Co, a major nylon chips producer in the region, to cut back production at its 1,000 tonnes/day plant to less than 40% since the past two weeks, a source said.
Zig sheng Industrial Co was also planning to shut down its 150,000/tonne year facility at Taiwan for maintenance in early July if the weak demand situation continued, a source close to the company said.
I think this is a good time to take a long vacation. However, we are still planning the shut down, it is not finalized yet, the source added.
Nylon production would also be affected in east China s major textile manufacturing province of Zhejiang from 1 July to 13 September when plants will shut down due to provincial government restrictions on production.
The restrictions are aimed at decreasing carbon emissions and reducing commercial consumption of electricity during peak summer season, Zhejiang s Economic and Information Technology Commission said in a report on 11 June.
We estimate this issue [cutback] will have an impact of around 20% on production, said a Taiwan-based caprolactam producer who supplies the feedstock to the plants located in the affected region.
However, some of the plants in northern China and Guangdong actually welcome the news, as it means orders might be directed to them. It means more business for them, he added.
($1 = ?.81)
Market sentiment for nylon chips was extremely bearish as most spot buyers adopted a wait-and-see stance and the few who did buy were only securing minimal volumes to cover immediate needs, sources said.
Sales are slow, very slow. I have no idea what price the downstream industry wants exactly, an industry source said.
Nylon is widely used in the manufacture of hosiery, knitted garments, threads, ropes, filaments, nets and tire cords.
Nylon chips spot prices fell by $50-80/tonne (?1-65/tonne) to $2,800-2,850/tonne CFR (cost and freight) China on 22 June amid weak market sentiment, based on ICIS data.
In China and Taiwan, the feedstock caprolactam market continued its downward spiral as traders continued to close deals at lower prices with values tumbling to a three-month low this week.
Prices were assessed $50-170/tonne lower at $2,350-2,380/tonne CFR Taiwan, $2,330-2,380 CFR China and $2,350-2,450/tonne CFR NE Asia on 23 June.
Caprolactam is an intermediate primarily used in the production of nylon 6 fibres, plastics and other polymeric materials.
Poor sales had forced Taiwan s Li Peng Enterprise Co, a major nylon chips producer in the region, to cut back production at its 1,000 tonnes/day plant to less than 40% since the past two weeks, a source said.
Zig sheng Industrial Co was also planning to shut down its 150,000/tonne year facility at Taiwan for maintenance in early July if the weak demand situation continued, a source close to the company said.
I think this is a good time to take a long vacation. However, we are still planning the shut down, it is not finalized yet, the source added.
Nylon production would also be affected in east China s major textile manufacturing province of Zhejiang from 1 July to 13 September when plants will shut down due to provincial government restrictions on production.
The restrictions are aimed at decreasing carbon emissions and reducing commercial consumption of electricity during peak summer season, Zhejiang s Economic and Information Technology Commission said in a report on 11 June.
We estimate this issue [cutback] will have an impact of around 20% on production, said a Taiwan-based caprolactam producer who supplies the feedstock to the plants located in the affected region.
However, some of the plants in northern China and Guangdong actually welcome the news, as it means orders might be directed to them. It means more business for them, he added.
($1 = ?.81)
