September 2011 Asian Caprolactam (Capro) is selling in the $3450-$3500/MTprice range

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The price of Caprolactam (capro) delivered to China in September 2011 seems to have settled in the $3450-$3500/MT price range.  Both the China and USA capro markets seem to be priced in about the same level, with China still leading the way with strong demand for the PA6 pellets.  The real challenge for the major PA6 producers is getting the price of their prime pellets to keep up with the capro price increases.  I hear that some of the major US PA6 producers are taking orders at $1.63/lb. for large volume sales.  The price of prime capro is up around $1.58/lb., so it is very hard for the producers to justify taking orders below a price of $1.70/lb. or higher for prime Nylon 6 pellets.  I think that the prime capro market has reached is maximum price level, and that capro prices will stay at their current level as long as China’s demand for fibers continues to grow.  The USA housing market continues to be slower than normal, and the PA6 carpet manufacturers are full of inventory.  Carpet consumption is down domestically, which should lead to some excess PA6 polymer capacity for the majors in the States.  We probably will not see the price of capro soften much until China develops enough internal capacity to slow down the importation of material into the country.

Nylon 66 (PA 66) continues to be a little bit soft in demand, with material prices softening a few cents in August.  Wide-spec PA 66 prices are down about $.03-$.05/lb. since late July 2011, and may soften even more in September if there is not an uptick in demand in the near future.  At this time we are having a hard time getting orders from our customers at the current PA66 price levels.  Our customers are still buying PA 66 and PA6, but only as they need material to run orders.   I expect Nylon 66 prices to remain flat in September, and stay at their current price level.  If demand for PA66 does not increase in the next 30-45 days, I think that we will see PA66 prices soften even more in the 4th Qtr 2011.

There is the new challenge to look out for in China today.  The Chinese central government has changed the way that they are allowing plastic scrap to be imported into the country.  The have started enforcing a new regulation requiring the owner of the Plastic Scarp Importation License (Permit) to sell all of the material that they import into China.  In the past, all plastic scrap was imported into China by a handful of plastic brokers that had been granted the Plastic Scarp Importation License.  The holder of Plastic Scarp Importation License would then charge other companies a fee per metric ton (or per container), and allow another company to import plastic scrap into China using their permit number.  Now the Chinese central government wants to bring more control into the system, and is requiring the holder of the Plastic Scarp Importation License to personally sell all of the material that they import.  Due to this change in the law there are now over 14,000 containers of plastic scrap backed up in the Port of Hong Kong waiting for movement into China.  

There is actually a shortage of plastic scrap like PMMA in south China due to the change in the law.  It is taking us longer to get our materials into the country, and we are paying an additional fee of $130/MT on the product that we are getting into China.  Our concern is that material prices are softening in China due to weak demand, and there are literally thousands of containers of plastic scrap stuck in the Port of Hong Kong.  We feel scrap plastic prices will soften even more due to the flood of material that will hit China once the containers backing up in Hong enter the market.

We feel all plastic material prices will soften slightly in September 2011, due to lower overall feedstock costs, and a sluggish world economy.  The majors don’t like hearing it but demand for product is weak, and our customers are resistant to any additional material price increases at this time.

Dualloy currently has the following Nylon 66 (PA66) and Nylon 6 (PA6) materials for sale:
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

Dualloy Sells the following types of Nylon 6 Polymer production waste:
PA6 Kettle Bottoms
PA6 Capro Residue
Call for MOQ and current material prices

Dualloy purchases / sells plastic resin and polymers in the following forms:
Aged / Obsolete Virgin Pellets
Wide Specification, Off-grade Pellets
Clean uniform plastic regrinds
Reactor Lumps/Chunks/Patties
Nylon Fiber Bales

See us on Facebook at the following pages:
Dualloy Engineering Polymers Ltd.
Nylon 66 Plastic Sales
Nylon 6 (PA 6) Plastic Sales
Nylon 66 Plastic Recycling Company
PVB Plastic Recycling – Polyvinyl Butyral
Chrome Plated Plastic Scrap Recycling

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