Thursday, December 15, 2011
Wednesday, November 30, 2011
Tuesday, November 22, 2011
Tuesday, November 15, 2011
Thursday, October 13, 2011
October 2011 Asian Caprolactam (Capro) prices soften to the $3350/MT price range
Friday, September 16, 2011
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
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
Thursday, June 30, 2011
Caprolactam prices in Asia are back to rising after falling to around $3120/MT in late May 2011
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 Recycling Company