Sunday, July 4, 2010

Nylon 66 Prices seem to have peaked, while Nylon 6 prices are softening in July 2010.

Nylon 66 (PA 66) wide-specification and PA-66 scrap prices seem to have reached their peak in late June 2010. Invista is no longer operating under force majeure, and the market is starting to slow down again in Asia. Finished goods orders in S. China were off in the 14-15% range in the month of June, and we have seen our PA66 and PA6 business starting to slow down as well. Business in Asia has been affected by the current uncertainty in the world financial markets, and the softening Euro. Prices for Nylon 66 are at a historic high, and will probably start to level out in July with little change through the end of 2010.

On the other hand the price of Nylon 6 is continuing to soften in China mainly due to the softening price of Benzene. Demand for Nylon 6 is showing signs of softening as well, so I think the price of PA-6 may soften a little more before stabilizing in the world market. As we reach the middle of 2010 it is probably time to start watching how much material China continues to purchase through the end of the year. Liquid chemical inventories (feedstocks) are reaching their storage capacity in China, and will need to be lowered in the near future to make room for additional product. 2010 may end up being a repeat of 2009, where the Chinese slow their buying volume of all materials in the second half of the year in order to work down their raw materials inventory.

Dualloy recycles clean Polyvinyl Butyral (PVB), and purchases clean post industrial clear and color trim scrap from decorative windows / glass lamination companies. Dualloy recycles PVB trim scrap, obsolete / blocked rolls, aged roll inventory, purge patties, fluff/flake. We are not interested in purchasing PVB scrap that has been recovered from automotive windshields. Dualloy purchases baled PVB waste, regrinds, and rolls. Please contact James Gubera if you have any clean PVB waste for sale.

The Acrylic (PMMA) market is very difficult for us to deal in at this time. The sale price in South China for low end monomer extraction scrap is around USD$1100-$1120/MT CFR HK, and we definitely cannot make this price work in today’s market. All of the major USA PMMA producers have their scrap priced over the $.50/lb., so buying PMMA scrap and exporting it to China is very difficult to say the least. We have been buying material to maintain our relationship with the producers, and to keep the material supply door open for when the acrylic scrap market turns around.

Dualloy sells the following types of Nylon 6 Polymer waste.
Nylon 6 Kettle Bottoms
Nylon 6 Depoly Residue
Nylon 6 Solidified Oligomer Waste
Nylon 6 Washwater
Nylon 6 Washwater/Oligomer Waste
Call for MOQ and current material prices.

Dualloy purchases/sells plastic resin and polymers in the following forms.
Aged/Obsolete Virgin Pellets
Wide-Specification Pellets
Clean uniform Plastic Regrinds
Reactor Lumps/Chunks/Patties
Nylon Fiber Bales

Dualloy sells the following types Nylon 66 pellets / regrinds:
Nylon 66 Semi Dull Wide Spec Pellets
Nylon 66 Dull Second Quality Pellets
Nylon 66 Textile Bright Pellets
Nylon 66 Pellets w/ up to 0.02% TiO2
Nylon 66 Mixed Color Regrind
Nylon 66 Bright / Semi Dull / Dull Baled Fibers

Prime Nylon 6 Pellets 2.7 RV - Natural
Packaged in 1,500# boxes

Please feel free to contact me at: JamesGubera@dualloy.com