Asian Caprolactam (Capro) prices continued to rise in July 2011

Dualloy Engineering Polymers Ltd. – Plastic Scrap Recycling
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The price of prime Caprolactam (Capro) was up again in the month July 2011 to over $3400/MT delivered in the Asian market.  Although we have seen most other material prices soften over the past 2 months, the price of Capro seems to be on the way back up.  The USA domestic producers raised the price of Caprolactam up to the $3500/MT or higher for August 2011 shipments.  The real problem now for the producers is getting the price of prime Nylon 6 to keep up with the monthly Caprolactam price increases.  Now with the current down turn in the world economy it will be hard for the Capro producers to keep the prices up as the price of oil drops into the low $80’s/barrel.  Both cotton and PET prices are dropping, which will put additional pressure on the price of Nylon 6 fibers to soften.  Cotton is currently selling at $1.49/lb, which has softened in price by 55% since reaching a high in March of $2.29/lb.
The price of prime Nylon 6 (PA6) pellets should start to soften due to lower feedstock costs, and downward pricing pressure from competitive fibers like cotton and PET.
We continue to see the Asian market slow in both domestic and export sales orders.  The Nylon 66 (PA66) wide-specification (WS) prices have remained stable in the Asian market due to the tightness in the material supply.  Although prime Nylon 66 prices have softened slightly in China, the price of the PA 66 WS pellets and regrinds have remained fairly stable in the Asian market.  This due to the fact that the USA domestic Nylon 66 producers are in a sold out position for their second quality pellets, fibers, and regrind scrap.  The WS Nylon 66 market is probably tighter in material supply than the prime market at this time, so don’t expect to see WS Nylon 66 prices soften much in 2011.
I would be cautious on any plastic material that is being purchased in the month of August.  PE / PP were both expected to go up in this month, but the current softening in the price of oil should put and end to both of those announced increases.  I think most Major Producers and Material Buyers are in a hold pattern, and are trying to figure out how much material prices will soften due to the continued downturn in the world economy.  We expect to see most material prices down or flat in price over the next 60 days.
 Dualloy is currently seeing the following material prices:
Generic prime PP pellets – PP were down another $.04/lb. in July, but then the producers announced a $ increase for August..  We are currently seeing the price of PP railcars in the $.71-.74/lb delivered price range.  LTL (20K#+) packaged goods should probably be selling in the $.84-.88/lb. delivered price range.
Generic prime LDPE pellets – The price of LDPE dropped by about $.04/lb. in July, but is up $.05/lb for August.  Railcars are still selling in the mid-$.80’s delivered to the packaging warehouse in Houston.  There is an increase of $.06/lb. announced in LDPE for Sept. 2011.
Generic Pellets HDPE – At the end of June delivered railcars of blow molding resin are selling in the $.62-$.64/lb. price range, and are expected to dip below $.60/lb. for July 2011 railcar shipments.
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
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