Thursday, October 13, 2011

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


Dualloy Engineering Polymers Ltd. - Plastic Scrap Recycling
Please feel free to contact me at: JamesGubera@dualloy.com
See our webpage at:  Dualloy.com

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/MT 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 $.65/lb.
LDPE Ext Film Prime Pellets  Sales mid-$.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.

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

PA6 Kettle Bottoms
PA6 Capro Residue
Call for MOQ and current material prices

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:

Friday, September 16, 2011

Plastic Recycling in the USA / China Markets is changing locations.

Plastic Recycling in the USA / China Markets is changing locations.

I am now posting my blog with WordPress at:  Plastic Recycling in the USA / China Markets

Feel free to contact me at:  James Gubera
Telphone #:  281-556-6481

Friday, September 2, 2011

September 2011 Asian Caprolactam (Capro) is selling in the $3450-$3500/MTprice range

Dualloy Engineering Polymers Ltd. - Plastic Scrap Recycling Please feel free to contact me at: JamesGubera@dualloy.com
See our webpage at:  Dualloy.com

The price of Caprolactam (capro) delivered to China in September 2011 seems to have settled in the $3450-$3500/MT price range.  Both the China and USA capro markets seem to be priced in about the same level, with China still leading the way with strong demand for the PA6 pellets.  The real challenge for the major PA6 producers is getting the price of their prime pellets to keep up with the capro price increases.  I hear that some of the major US PA6 producers are taking orders at $1.63/lb. for large volume sales.  The price of prime capro is up around $1.58/lb., so it is very hard for the producers to justify taking orders below a price of $1.70/lb. or higher for prime Nylon 6 pellets.  I think that the prime capro market has reached is maximum price level, and that capro prices will stay at their current level as long as China’s demand for fibers continues to grow.  The USA housing market continues to be slower than normal, and the PA6 carpet manufacturers are full of inventory.  Carpet consumption is down domestically, which should lead to some excess PA6 polymer capacity for the majors in the States.  We probably will not see the price of capro soften much until China develops enough internal capacity to slow down the importation of material into the country.

Nylon 66 (PA 66) continues to be a little bit soft in demand, with material prices softening a few cents in August.  Wide-spec PA 66 prices are down about $.03-$.05/lb. since late July 2011, and may soften even more in September if there is not an uptick in demand in the near future.  At this time we are having a hard time getting orders from our customers at the current PA66 price levels.  Our customers are still buying PA 66 and PA6, but only as they need material to run orders.   I expect Nylon 66 prices to remain flat in September, and stay at their current price level.  If demand for PA66 does not increase in the next 30-45 days, I think that we will see PA66 prices soften even more in the 4th Qtr 2011.

There is the new challenge to look out for in China today.  The Chinese central government has changed the way that they are allowing plastic scrap to be imported into the country.  The have started enforcing a new regulation requiring the owner of the Plastic Scarp Importation License (Permit) to sell all of the material that they import into China.  In the past, all plastic scrap was imported into China by a handful of plastic brokers that had been granted the Plastic Scarp Importation License.  The holder of Plastic Scarp Importation License would then charge other companies a fee per metric ton (or per container), and allow another company to import plastic scrap into China using their permit number.  Now the Chinese central government wants to bring more control into the system, and is requiring the holder of the Plastic Scarp Importation License to personally sell all of the material that they import.  Due to this change in the law there are now over 14,000 containers of plastic scrap backed up in the Port of Hong Kong waiting for movement into China.  

There is actually a shortage of plastic scrap like PMMA in south China due to the change in the law.  It is taking us longer to get our materials into the country, and we are paying an additional fee of $130/MT on the product that we are getting into China.  Our concern is that material prices are softening in China due to weak demand, and there are literally thousands of containers of plastic scrap stuck in the Port of Hong Kong.  We feel scrap plastic prices will soften even more due to the flood of material that will hit China once the containers backing up in Hong enter the market.

We feel all plastic material prices will soften slightly in September 2011, due to lower overall feedstock costs, and a sluggish world economy.  The majors don’t like hearing it but demand for product is weak, and our customers are resistant to any additional material price increases at this time.

Dualloy currently has the following Nylon 66 (PA66) and Nylon 6 (PA6) materials for sale:
Nylon 66 Bright w/HS Wide Spec Pellets        $1.66/lb.    
Nylon 66 Semi Dull Wide Spec Pellets           $1.64/lb
Nylon 66 Dull Second Quality Pellets               $1.60/lb.
Nylon 66 Off-Grade Textile Bright Pellets        $1.68/lb.        
Nylon 66 Off-grade Pellets w/ up to .02% TiO2    $1.74/lb.
Nylon 66 Mixed Color Regrind                         $1.40/lb.
Nylon 66 Bright Regrind from Lump/Chunk    $1.48/lb.
Nylon 66 Semi Dull / Mixed Luster Regrind    $1.44/lb.
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

Wednesday, August 10, 2011

Asian Caprolactam (Capro) prices continued to rise in July 2011

Dualloy Engineering Polymers Ltd. - Plastic Scrap Recycling
Please feel free to contact me at: JamesGubera@dualloy.com
See our webpage at:  Dualloy.com

The price of prime Caprolactam (Capro) was up again in the month July 2011 to over $3400/MT delivered in the Asian market.  Although we have seen most other material prices soften over the past 2 months, the price of Capro seems to be on the way back up.  The USA domestic producers raised the price of Caprolactam up to the $3500/MT or higher for August 2011 shipments.  The real problem now for the producers is getting the price of prime Nylon 6 to keep up with the monthly Caprolactam price increases.  Now with the current down turn in the world economy it will be hard for the Capro producers to keep the prices up as the price of oil drops into the low $80’s/barrel.  Both cotton and PET prices are dropping, which will put additional pressure on the price of Nylon 6 fibers to soften.  Cotton is currently selling at $1.49/lb, which has softened in price by 55% since reaching a high in March of $2.29/lb.

The price of prime Nylon 6 (PA6) pellets should start to soften due to lower feedstock costs, and downward pricing pressure from competitive fibers like cotton and PET.

We continue to see the Asian market slow in both domestic and export sales orders.  The Nylon 66 (PA66) wide-specification (WS) prices have remained stable in the Asian market due to the tightness in the material supply.  Although prime Nylon 66 prices have softened slightly in China, the price of the PA 66 WS pellets and regrinds have remained fairly stable in the Asian market.  This due to the fact that the USA domestic Nylon 66 producers are in a sold out position for their second quality pellets, fibers, and regrind scrap.  The WS Nylon 66 market is probably tighter in material supply than the prime market at this time, so don’t expect to see WS Nylon 66 prices soften much in 2011.

I would be cautious on any plastic material that is being purchased in the month of August.  PE / PP were both expected to go up in this month, but the current softening in the price of oil should put and end to both of those announced increases.  I think most Major Producers and Material Buyers are in a hold pattern, and are trying to figure out how much material prices will soften due to the continued downturn in the world economy.  We expect to see most material prices down or flat in price over the next 60 days.

 Dualloy is currently seeing the following material prices:
Generic prime PP pellets – PP were down another $.04/lb. in July, but then the producers announced a $.03.lb increase for August..  We are currently seeing the price of PP railcars in the $.71-.74/lb delivered price range.  LTL (20K#+) packaged goods should probably be selling in the $.84-.88/lb. delivered price range.

Generic prime LDPE pellets – The price of LDPE dropped by about $.04/lb. in July, but is up $.05/lb for August.  Railcars are still selling in the mid-$.80’s delivered to the packaging warehouse in Houston.  There is an increase of $.06/lb. announced in LDPE for Sept. 2011.

Generic Pellets HDPE – At the end of June delivered railcars of blow molding resin are selling in the $.62-$.64/lb. price range, and are expected to dip below $.60/lb. for July 2011 railcar shipments.

WS ABS – We are currently seeing WS ABS 3 MI / 3 Izod, Nat Color, low gloss pellets selling around $1.20/lb. in truck load quantities.
WS PC – We are currently seeing WS PC pellets selling in the $1.30-1.35/lb. price range.
PC Regrind – We currently see clean PC bottle RGR selling in the $.87-.92/lb. price range.

Nylon 66 Bright w/HS Wide Spec Pellets            $1.66/lb.          
Nylon 66 Semi Dull Wide Spec Pellets                $1.64/lb
Nylon 66 Dull Second Quality Pellets                   $1.60/lb.
Nylon 66 Off-Grade Textile Bright Pellets     $1.68/lb.                      
Nylon 66 Off-grade Pellets w/ up to .02% TiO2   $1.74/lb.
Nylon 66 Mixed Color Regrind                              $1.40/lb.
Nylon 66 Bright Regrind from Lump/Chunk         $1.48/lb.
Nylon 66 Semi Dull / Mixed Luster Regrind         $1.44/lb.
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

PA6 Kettle Bottoms
PA6 Capro Residue
Call for MOQ and current material prices

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:

Thursday, June 30, 2011

Caprolactam prices in Asia are back to rising after falling to around $3120/MT in late May 2011

It is hard to say what is going to happen to plastic resin prices through the 3 QTR of 2011, but I feel most resin prices will soften over the next 30-60 days.  We saw Caprolactam (Capro) fall in price by about $400/MT in late May to a price range of about $3120-$3130/MT, after reaching a high of around $3500/MT at the beginning of the month.  In June we saw the capro price in China recover by about $100/MT ending the month in the $3220-$3230/MT delivered price range.  The USA major Capro producers are hoping to push the price up to $3300/MT in July, but I don’t think that there is enough demand in the world market to support the next price increase.  China’s housing market is continuing to show signs of slowing down, especially after the Central Government raised the Banks reserve rate last week to 21.5%.  This ½ percent increase in the reserve rate will take an additional USD$57-58 billion out of circulation in the Chinese economy. 

In addition, China’s Government Banks have tightened their lending practices to small companies, which forces most small companies to seek high interest business loans from the private sector (loan sharks).  The current correction in the Chinese market is just beginning, and will continue to worsen over the next 30-90 days, so watch for plastic material inventories to build and prices to fall during the same time period.  Due to the slower demand in the China market for prime Nylon 6 pellets material inventories are starting to grow, and prices are continuing to soften.  It is hard for me to put my finger on the price of wide specification (WS) Nylon resins in China today, because no one is placing orders for material.  We have both Nylon 66 and Nylon 6 products in inventory to sell in our Guangzhou warehouse, but we do not see the customers coming in the door to buy material.  The major polymer producers know that China’s manufacturing is slowing down in the short run, and are hoping that India will become the new emerging market to keep the world’s plastic supply in balance (short).

Please see out web page at:   http://dualloy.com/

We are currently seeing the following material prices:
Generic prime PP pelletsPP prices are down by about $.07-.08/lb. in June and should soften some more in July.  We are currently seeing the price of PP railcars in the $.75-.77/lb delivered price range.  LTL (20K#+) packaged goods should probably be selling in the $.88-.92/lb. delivered price range.  Wait 2 more days and you should be able to buy the same material for less in July.

Generic prime LDPE pellets – The price of LDPE dropped by about $.08/lb. in June as well.  Railcars are currently selling in the mid-$.80’s delivered to the packaging warehouse in Houston.

Generic prime HDPE pellets– The biggest price drop of about $.09/lb. was seen in generic prime HDPE blow molding material, and it as well should continue to soften in July.  At the end of June delivered railcars of blow molding resin are selling in the $.65-$.66/lb. price range, and are expected to dip below $.60/lb. for July 2011 railcar shipments.

Wide-Specification (WS) ABS – We are currently seeing WS ABS 3 MI / 3 Izod, Nat Color, low gloss pellets selling around $1.20/lb. in truck load quantities.
WS PC – We are currently seeing WS PC pellets selling in the $1.30-1.35/lb. price range.
PC Regrind – We currently see clean PC bottle RGR selling in the $.87-.92/lb. price range.

Nylon 66 Bright w/HS Wide Spec Pellets           $1.66/lb.          
Nylon 66 Semi Dull Wide Spec Pellets               $1.64/lb
Nylon 66 Dull Second Quality Pellets                  $1.60/lb.
Nylon 66 Off-Grade Textile Bright Pellets       $1.68/lb.                      
Nylon 66 Off-grade Pellets w/ up to .02% TiO2   $1.74/lb.
Nylon 66 Mixed Color Regrind                            $1.40/lb.
Nylon 66 Bright Regrind from Lump/Chunk       $1.48/lb.
Nylon 66 Semi Dull / Mixed Luster Regrind       $1.44/lb.
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

PA6 Kettle Bottoms
PA6 Capro Residue
Call for MOQ and current material prices

Aged / Obsolete Virgin Pellets
Wide Specification, Off-grade Pellets
Clean uniform plastic regrinds
Reactor Lumps/Chunks/Patties
Nylon Fiber Bales

Please feel free to contact me at: JamesGubera@dualloy.com
See us on Facebook at the following pages:

Sunday, May 15, 2011

Caprolactam (Capro) and Nylon 6 (PA6) continue to soften in the Asia/China markets.

The price of prime Caprolactam continues to soften in the Asian market. Last week Capro was selling in China in the $3320/MT price range and falling. The USA Capro suppliers (Honeywell / BASF) are trying to maintain the price at $3500/MT for their material, but the China Capro producers are being much more aggressive in leading the Capro price reductions. Most of our Nylon 6 buyers (compounders and end users) have stopped buying resin, and are running their plants on lower cost old inventory that is in the warehouse. Any Capro or Nylon 6 (PA6) price increases at this time are being driven by the China traders/brokers on the supply side, because today’s price increases are not based on true demand. Most materials buyers feel these markets will continue to soften, and will stay out of the Capro and PA6 market as long as their old inventory will allow. Over the past week we have watched PA6 drop in price by about $.01 ($22/MT) per day, and it looks like this trend will continue in the short run.

The Nylon 66 (PA 66) market is also starting to show signs of price softening in China, but not to the same extent as the Capro and PA 6 price decreases. PA 66 is a much tighter market on the supply side, so it probably won’t see the weekly price decreases that are being seen in the PA 6 market. Most of our customers feel that all material prices have gotten out of hand, and they can no longer pass them on to the end product and consumers. I think that PA 66 prices will stabilize before the price of PA 6 due to a tighter supply of the material in the world market. I will not guess where either material, PA 66 or PA 6, is going to bottom out, but the current slowdown in the China market will definitely have its impact on both materials and continue to drive down prices in the short run.

We see material prices continue to head up in both the domestic and China Acrylic (PMMA) markets, which will not be helped by the recent flooding on the Mississippi and Ohio rivers. Lucite has declared force majeure in the MMA market due to this recent flooding, because of their inability to move MMA monomer barges up both rivers to their customers due to the high water. I understand that the flooding has had a negative impact on the styrene monomer market, which has lead to Ineos declaring force majeure in the polystyrene market late last week. I am not sure if this is going to drive up material prices for PMMA or PS in the short run, because these should be temporary feedstock supply disruptions that will go away once the water level gets back to normal on the Mississippi and Ohio rivers.

The domestic ABS market appears to be sold out through June, and most of the USA suppliers are now taking orders for July. The crazy part is that you have to get your orders in now for July shipments, but the suppliers cannot tell the buyers where the price for material will be when they ship the car of ABS to the warehouse for packaging. It is basically order now, and you will be billed at the July market price that will be determined for ABS in mid-June.

When are the material price increases for plastic going to stop? Today it is any ones guess.

I think that most plastic materials have reached their peak in pricing, and should start to show signs of softening as we move into the summer months. The public warehouse that we use in Houston, TX, mainly loads export containers for Formosa Plastics, and they have not loaded a single export container of either PE or PP since the first of April. Olefin inventories are starting to back up in the Houston packaging warehouses, because the domestic producers have priced themselves out of the Asian export market. The ABS producers will start building excess inventories as well as we move into the summer months, because of the slow housing market and decreased demand from DWV pipe producers.

Here is where we pricing for the following materials the week of May 16, 2011. These are material buying prices for TL or larger quantities from the large plastic resellers / brokers.

ABS Wide-spec pellets (3 Melt / 3 Izod - low gloss) $1.20+/lb.

ABS Prime Pellets $1.35+/lb.

SAN Wide-spec pellets (w/black specs) $.90/lb.

SAN Wide-spec pellets (good color) $.96-.98//lb.

SAN Prime pellets $1.30+/lb.

PC/ABS Black Wide-spec pellets $.92-.95/lb.

PC/ABS Black reprocessed pellets $.82-.85/lb.

PP Homo Prime Railcars $1.14+/lb.

PP Homo Prime truck loads $1.25+/lb.

LDPE Wide-spec truck loads $.85-.90/lb.

LDPE Prime $1.10+/lb.

HDPE Blow Molding Grade $.80-.83/lb.

(Some brokers are still selling old inventory at) $.77-.79/lb.

HDPE Injection $.75-.77/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-GradeTextile 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


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

PA6 Solidified 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, Off-grade Pellets

Clean uniform plastic regrinds

Reactor Lumps/Chunks/Patties

Nylon Fiber Bales

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

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