LONDON (GC Intelligence) — European nylon 6 (PA6) prices rolled over from January to February, according to GC Intelligence market assessment.
Prices did not change despite the upward pressure from higher benzene costs, increasing for the third consecutive month in February.
The higher benzene values did not filter downstream because both caprolactam and PA6 markets remain oversupplied.
Participants in both markets had to absorb the cost increases and experience yet again a contraction in margins.
But this situation could reverse in March after the substantial fall in benzene prices.
PA6 and caprolactam prices will probably decrease in March in line with benzene, but so far there have been strong indications that these are relatively small.
PA6 producers in the next few months have a good chance to expand margins that have been under considerable pressure for quite some time.
Future profits, however, are under threat for all market participants as the coronavirus outbreak will probably hit demand in most sectors across Europe.
NOTE: For price indices, forecasts, and a more in-depth market analysis take a look at the GC INTELLIGENCE® Market Reports…→