Caprolactam prices in Asia are back to rising after falling to around $3120/MT in late May 2011

It is hard to say what is going to happen to plastic resin prices through the 3 QTR of 2011, but I feel most resin prices will soften over the next 30-60 days.  We saw Caprolactam (Capro) fall in price by about $400/MT in late May to a price range of about $3120-$3130/MT, after reaching a high of around $3500/MT at the beginning of the month.  In June we saw the capro price in China recover by about $100/MT ending the month in the $3220-$3230/MT delivered price range.  The USA major Capro producers are hoping to push the price up to $3300/MT in July, but I don’t think that there is enough demand in the world market to support the next price increase.  China’s housing market is continuing to show signs of slowing down, especially after the Central Government raised the Banks reserve rate last week to 21.5%.  This ½ percent increase in the reserve rate will take an additional USD$57-58 billion out of circulation in the Chinese economy. 
In addition, China’s Government Banks have tightened their lending practices to small companies, which forces most small companies to seek high interest business loans from the private sector (loan sharks).  The current correction in the Chinese market is just beginning, and will continue to worsen over the next 30-90 days, so watch for plastic material inventories to build and prices to fall during the same time period.  Due to the slower demand in the China market for prime Nylon 6 pellets material inventories are starting to grow, and prices are continuing to soften.  It is hard for me to put my finger on the price of wide specification (WS) Nylon resins in China today, because no one is placing orders for material.  We have both Nylon 66 and Nylon 6 products in inventory to sell in our Guangzhou warehouse, but we do not see the customers coming in the door to buy material.  The major polymer producers know that China’s manufacturing is slowing down in the short run, and are hoping that India will become the new emerging market to keep the world’s plastic supply in balance (short).
Please see out web page at:
We are currently seeing the following material prices:
Generic prime PP pelletsPP prices are down by about $.07-.08/lb. in June and should soften some more in July.  We are currently seeing the price of PP railcars in the $.75-.77/lb delivered price range.  LTL (20K#+) packaged goods should probably be selling in the $.88-.92/lb. delivered price range.  Wait 2 more days and you should be able to buy the same material for less in July.
Generic prime LDPE pellets – The price of LDPE dropped by about $.08/lb. in June as well.  Railcars are currently selling in the mid-$.80’s delivered to the packaging warehouse in Houston.
Generic prime HDPE pellets– The biggest price drop of about $.09/lb. was seen in generic prime HDPE blow molding material, and it as well should continue to soften in July.  At the end of June delivered railcars of blow molding resin are selling in the $.65-$.66/lb. price range, and are expected to dip below $.60/lb. for July 2011 railcar shipments.
Wide-Specification (WS) ABS – We are currently seeing WS ABS 3 MI / 3 Izod, Nat Color, low gloss pellets selling around $1.20/lb. in truck load quantities.
WS PC – We are currently seeing WS PC pellets selling in the $1.30-1.35/lb. price range.
PC Regrind – We currently see clean PC bottle RGR selling in the $.87-.92/lb. price range.
Nylon 66 Bright w/HS Wide Spec Pellets           $1.66/lb.          
Nylon 66 Semi Dull Wide Spec Pellets               $1.64/lb
Nylon 66 Dull Second Quality Pellets                  $1.60/lb.
Nylon 66 Off-Grade Textile Bright Pellets       $1.68/lb.                      
Nylon 66 Off-grade Pellets w/ up to .02% TiO2   $1.74/lb.
Nylon 66 Mixed Color Regrind                            $1.40/lb.
Nylon 66 Bright Regrind from Lump/Chunk       $1.48/lb.
Nylon 66 Semi Dull / Mixed Luster Regrind       $1.44/lb.
All prices are for full TL’s Ex-works USA plant.  All material prices are subject to change without notice.  All material offered is subject to prior sale.  Call for the current material price quotation.

Prime Nylon 6 Pellets 2.7 RV – Natural
Packaged in 1,500# boxes
PA6 Kettle Bottoms
PA6 Capro Residue
Call for MOQ and current material prices
Aged / Obsolete Virgin Pellets
Wide Specification, Off-grade Pellets
Clean uniform plastic regrinds
Reactor Lumps/Chunks/Patties
Nylon Fiber Bales
Please feel free to contact me at:
See us on Facebook at the following pages:
This entry was posted in Caprolactam, HDPE, LDPE, Nylon 6, PP. Bookmark the permalink.

Leave a Reply