Blending Revolution
Published

Price Hikes On Nylon 66 and 6 Underway?

While price increases for nylon 66 are attributed to supply contraints, those for nylon 6 are linked to upward raw material costs.

Share

Domestic price increases for nylons 66 and 6 emerged before mid-April, but driven by different factors. Supply constriction is the issue in the case of nylon 66, whereas nylon 6 suppliers attribute their increases on higher raw material costs. The timing and degree of implementation of these increases remains to be seen.

 

The supply issue for nylon 66 and its intermediates was brought on by a force majeure action by Invista—now ranked as one of the largest suppliers of nylon 66 resins and compounds in the world. The company reported a ‘chemical function issue’ at its Victoria, Texas facility as the reason for implementing supply allocations on nylon 66 as well as adiponitrile (ADN) and hexamethylene diamine (HMD) salts.

 

In its official statement the company noted that its representatives would be keeping its customers updated on amounts and rough estimates for timing of supply allocations. “We are working diligently to resolve the issue without compromising our relentless commitment to compliance, safety and the environment,” the statement said.

 

Industry experts concede that disruptions at any nylon 66 intermediate production facilities are likely to have a significant market impact because there are not many nylon 66 players, and all of the production facilities are on the larger scale. In our April issue’s Resin Pricing Analysis, Mark Kallman, v.p. of client services for engineering resins, PS, and PVC, at Resin Technologies, Inc. (RTi), described the nylon 66 market as a bit more balanced and not as competitive as nylon 6, which is more of a “commodity” resin. He also describes demand as fairly good, particularly in automotive, and expects to see an improvement over 2014.

 

Moreover, Kallman ventured the nylon 66 pricing trend to be flat-to-lower, as suppliers have continued to expand their profit margins due to lower feedstock costs. The unplanned Invista production issue may change this projection, at least for a time. So far, one supplier has announced a price increase--15ȼ/lb, effective May 1.

 

Meanwhile, a 7ȼ/lb price increase on nylon 6 has been issued by BASF--effective April 15, and by DSM--effective May 1, or as contracts allow. The latter cited increasing raw material prices as the reason for its action, and noted the following in its announcement, “While DSM continues to pursue and implement cost savings initiatives targeted at absorbing the impact of the raw material escalations, this additional increase is necessary to ensure DSM’s sustainable long-term position as leading supplier of engineering plastics.”

 

RTi’s Kallman estimates that nylon 6 prices have dropped around 5-10% from late third quarter 2014 through first quarter 2015, due to both a sharp drop in benzene prices and lower prices of other raw materials as well as ample capacity. He ventured that second-quarter pricing is likely to be flat to higher, driven by feedstock cost increases (e.g., the trajectory for benzene prices appears to be reversing), and some improvement in demand.

 

Want to find or compare materials data for different resins, grades, or suppliers? Check out Plastic Technology’s Plaspec Global materials database.

 

 

New Tinius Olsen VectorExtensometer testing
Cranes, Conveyors, Racks, Loaders, Accessories
Dri-Air
Windmoeller
Konica Minolta
mold, mould track, digital tracking, molding
Insert molding automation
Maguire Ultra
Guill - World Leader in Extrusion Tooling
RoyAlloy Stainless Mold Base Steel
Realationships
Konica Minolta CM-36dG

Related Content

Young Stretch-Film Processor Bets on Nanolayers

Going up against companies with as much as double its capacity, young stretch-film processor Zummit believes that new technology — notably 59-nanolayer films — will give it a competitive edge.

Read More
pet

Solve Four Common Problems in PET Stretch-Blow Molding

Here’s a quick guide to fixing four nettlesome problems in processing PET bottles.

Read More
sustainability

Reversing Logistics for Plastic Film Recycling

Learn how Mainetti built a circular supply chain for clear film packaging.

Read More
Film Extrusion

Pregis Performance Flexibles: In the ‘Wow’ Business

Pregis went big and bold with investment in a brand-new, state-of-the-art plant and spent big on expanding an existing facility. High-tech lines, well-known leadership and a commitment to sustainability are bringing the “wow” factor to blown film.

Read More

Read Next

Extrusion

How Polymer Melts in Single-Screw Extruders

Understanding how polymer melts in a single-screw extruder could help you optimize your screw design to eliminate defect-causing solid polymer fragments.  

Read More
Extrusion Know How

Troubleshooting Screw and Barrel Wear in Extrusion

Extruder screws and barrels will wear over time. If you are seeing a  reduction in specific rate and higher discharge temperatures, wear is the likely culprit.   

Read More
industry 4.0

People 4.0 – How to Get Buy-In from Your Staff for Industry 4.0 Systems

Implementing a production monitoring system as the foundation of a ‘smart factory’ is about integrating people with new technology as much as it is about integrating machines and computers. Here are tips from a company that has gone through the process.

Read More
NPE2024: The Plastics Show