Plastics Recycling in the USA / China Markets

Plastic Recycling in the USA / China Markets
A collection of observations and thoughts about plastics recycling and plastic sales in the USA / China.

September 2011 Asian Caprolactam (Capro) prices are holding firm in the $3500/MT price range.

Dualloy Engineering Polymers Ltd. – Plastic Scrap Recycling

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The price of Caprolactam (capro) delivered to China in September 2011 seems to be holding firm in the $3500/MT price range.  The price of prime Nylon 6 (PA6) continues to struggle to keep up with the capro price increases in the market.  Some of the domestic USA producers are taking large PA6 orders in the $1.60/lb. in order to move some inventory in the sluggish world economy.   The Nylon 6 producers are hoping to keep the material prices up, but the soft economy, along with lower feedstock and energy costs should lead to lower material prices across the board.  I don’t think that we will see a price correction in the plastics market close to what the we experienced in 2008, but there is more room for some further price erosion over the next 30-60 days.  Then I think that plastic material prices will bottom out, and that most resin prices will stabilize and plateau through the end of 2011.

The Nylon 66 (PA66) market continues to be somewhat sluggish in September as well, with material prices continuing to move down again during this month.  We have seen Nylon 66 wide specification pellet and regrind prices drop by about $.06/lb. over the past 60 days.  The producers are trying their best to keep PA66 material prices up, and resist the market pressure for further price declines.

We feel all plastic material prices will continue to be soft through the end of September 2011, due to lower feedstock and energy costs, and a continuing soft world economy.  PE, PP and ABS plastics saw the price of prime resins soften again in September, and will probably continue to soften even more in October.  Pretty soon the major Olefin producers will start manipulating capacity to tighten the market, and stabilize material prices.

The new challenge that most plastic buyers are facing is the tight supply of wide-specification (WS) pellets that are available for sale in the secondary market.  Most producers are making longer material production runs with fewer transitions between grades of resin.  For this reason there are fewer pounds of WS resin available for sale in the secondary market.  So as the world economy continues to slow down, and there is more prime resin available for sale in the market, the price differential between prime and WS resins will decrease.  Because the producers will be willing to take lower prices for some large prime material orders, while trying to keep the price of WS pellets up at the same time.

The majors still don’t like hearing it but demand for product continues to be soft, and most customers are resistant to any further material price increases.  At this time, most material prices are still not low enough yet, to justify taking a major inventory position on material.  Customers are placing orders for material, but only when they have an order in hand to support the purchase.

Dualloy currently has the following Nylon 66 (PA66) and Nylon 6 (PA6) materials for sale:
Nylon 66 Bright w/HS Wide Spec Pellets
Nylon 66 Semi Dull Wide Spec Pellets
Nylon 66 Dull Second Quality Pellets
Nylon 66 Off-Grade Textile Bright Pellets
Nylon 66 Off-grade Pellets w/ up to .02% TiO2
Nylon 66 Mixed Color Regrind
Nylon 66 Bright Regrind from Lump/Chunk
Nylon 66 Semi Dull / Mixed Luster Regrind

All prices are for full TL’s Ex-works USA plant. 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

Jim Gubera

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