Caprolactam (Capro) Prices softening in October 2011

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

October 2011 Asian Caprolactam (Capro) prices soften to the $3350/MT price range.

Dualloy Engineering Polymers Ltd. – Plastic Scrap Recycling

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The price of Caprolactam (capro) delivered to China in October 2011 has soften down to the $3350/MT price range from a price of $3420 in September. 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 now taking large PA6 orders below the price of $1.60/lb. in order to move some inventory.

The Nylon 66 (PA66) market continues to be somewhat sluggish in October as well, with material prices continuing to move down again early in the 4th QTR of 2011.  We have seen PA 66 wide-spec pellets and regrind prices soften over the past 60 days, but feel that this market is about to stabilize due to tighter supply.  The PA66 producers are trying their best to keep PA66 material prices up, and resist any market pressure for further price reductions.

We feel all plastic material prices will continue to be soft through the end of October 2011 mainly due to the soft world economy.  PE, PP and ABS plastics saw the price of prime resins soften again in October, and will probably continue to soften even more in November.  By then the major Olefin producers will start manipulating capacity to tighten the market, and stabilize material prices.  I think by December the market will start to see plastic material prices starting to stabilize, and remain at the new lower price level going into QTR 1, 2012
The majors are starting to realize that demand for most products is soft, and that most customers are resistant to any further material price increases.  Most plastic resin prices are still not low enough 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.  I do think that we will see prices in the plastic market stabilize before the end of 2011, and then plateau and increase in early 2012 based on supply/demand in the world market.

Here is where we see the various material prices the week of October 10, 2011.
The following are Rail Car prices delivered to a packaging facility.
HDPE Wide Spec Blow Molding Pellets               Export Sales $.55/lb.    Domestic Sales $.59/lb.
LDPE Ext Film Wide-Spec Pellets                      Export Sales $.61/lb.     Domestic Sales $.65/lb.
LDPE Ext Film Prime Pellets                              Domestic Sales mid-$.80’s/lb.
PP Homo Wide Spec Pellets                              Domestic  $.65-.67/lb.
PP Copo Wide Spec Pellets                              Domestic  $.67-.69/lb.
Some suppliers are still trying to get the low $.70’s for PP Copo.

The prices below are where we see the domestic sale price FOB the warehouse for truck load buyers.
ABS Generic Prime                    3 Melt / 6 Izod               $1.10/lb.
ABS Generic Prime                    2.5 Melt / 4 Izod Sheet   $1.17/lb.
ABS Wide-Spec                        8 Melt / 2.2 Izod            $.95/lb.
ABS Wise-Spec                        3 Melt / 2.5 Izod             $.95/lb.
Nylon 66 WS Bright Pellets                                $1.52/lb.
Nylon 66 WS Bright w/HS Pellets                       $1.44/lb.
Nylon 66 Mixed Luster Regrind                           $1.30/lb.

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 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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