Nylon 66 – All PA66 prices are up significantly in the first quarter of 2108

Chemco Services, Inc.
Nylon 66 Specialists
Nylon 66 / PA66 Off Grade Pellets, Baled Fibers, Regrinds / Shred

Contact Jim Gubera at:  jgubera@chemcoservices.com    Tel # 281-556-6481
Plastic Sales / Plastic Scrap Recycling

All Nylon 66 (PA66) prices are up significantly in the first quarter of 2108

The first quarter of 2018 has seen the prices of all PA66 materials going up due to extremely strong demand for material in both the prime and secondary markets.  2017 ended with nylon material supply tightening and PA66 resin prices starting to increase.  Then 2018 started off with cold weather and snow in the SE that caused the disruption of the production of the intermediaries that are used to make nylon. Due to the decreased feedstock supply Ascend, BASF and Rhodia (Solvay) have declared force majeure in the PA66 market.  Since the end of 2017 we have seen reduced volumes of off grade pellets and plant scarp that we normally collect on a monthly basis.  In addition, the cold weather in mid-January severely impacted the overall PA66 production in the USA. .  Due to the strong demand and reduced supply of material into the Nylon 66 secondary market all of the PA66 producers have increased their resin prices since the first of 2018.  All nylon 66 prices are up by at least $.10-.15/lb., and we expect to see more price increases in the first half of the year.

Chemco Services (CSI) has seen the price of all the PA66 materials that we collect and sell (off grade pellets, baled fibers, PI regrinds//shred) increase in price over the past 6 months.  The price of Nylon 66 off grade pellets is up by at least $.20/lb. since December 2017, and will increase even more before mid year.  The price of the post industrial regrinds and shred that we generate at our plants have increased by an average of $.13-$.17/lb. this year.  The price of PA66 fibers had been stable, but since the end of January the nylon fiber prices have started increasing as well.  We have increased the price of all of the PA66 fibers that CSI sells by $.10-$.15/lb. in the past 30 days.

Where the price of PA66 finally settles out at in 2018 we do not know, but we do feel that we are on track to reach new historic high prices before the end of this year.  The USA Nylon 66 producers are sold out of resin in terms of selling all of the prime resin and off grade pellets that they can produce in a given month.  Both PA66 prime and second quality pellets are in short supply, and the market will probably remain that way through all of 2018. We are currently hearing of cases where PA66 B-Grade natural off grade pellets are selling for a higher price than prime PA66 resin that is being bought on contract.   The price of the PA66 is always a major factor in the purchasing process, but in 2018 just getting off grade material, and having a strong Nylon 66 supply relationship may be a bigger issue.

The manufacturing process to produce virgin Nylon 66 products for the fiber and plastics market results in a number of products not suitable for sale in the prime resin market. Chemco Services buys/collects, processes and upgrades these producer off-grade streams to provide cost effective alternative products to the Nylon 66 market. Chemco offers PA66 Off-Grade pellets and recycled materials to help your company save money and better compete.  These alternative materials allow users to blend, process or compound (with or without prime) to produce a wide range of cost effective end products to fit specific market needs.

Chemco Services Sells:
Nylon 66 off grade / wide specification pellets and baled fibers             PA66 post industrial regrinds and shred

PA66 Impact Modified – Medium Impact
Packaged in boxes w/ foil liners
1 Truck / FCL

PA66 – 1 Mixed load  – Injection – Black Pellets
Original packages – Injection Grade with Lube Pellets – Black
Supplier packages – KG Bags, Boxes or Supersacks

833GF Off Grade Pellets – Natural
PA66 Natural GF Pellets – 33% GF w/HS      Glass Filled Pellets
1 Truck / FCL

850GF – Off Grade Pellets
PA66 Natural GF Pellets – 50% GF w/HS
1 Truck / FCL

933GF Off Grade – Black
PA66 Black GF Pellets – 33% GF w/HS
5 Trucks / FCL’s

Mineral Filled PA66
PA66 Mineral filled pellets – Call to Discuss

Mixed PA66 GF Load
PA66 Black GF – 13%, 23%, 33% GF – Segregated by GF%

Contact Jim Gubera for pricing.

Chemco Services Inc.
Nylon 66 Specialists
Plastic Sales / Plastic Scrap Recycling
Contact Jim Gubera:  jgubera@chemcoservices.com
Tel #:  281-556-6481

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