The prior declining trend in the price of nylon 66 chips was reversed in the second week of June. This downward adjustment cycle began in April and continued for around ninety-five days. Using the general-plastic-grade nylon 66 chip as an example, the price decreased by more than 10%, from a peak of 22,500 yuan/mt to approximately 20,000 yuan/mt at present. Since Invista revealed the repair schedule, this has nearly neutralized the prior rise. biobased plastic
The majority of downstream firms believed that the current fall would bottom out at or near the previous low of 19,000 yuan/mt.
Even though downstream inventories were almost depleted and were expected to be replenished in June, the expectation of over 200,000 tons of new capacity by companies like Invista, Shanghai Shenma, China Resources, and Haoyuan kept the market mood slightly negative. Contrary to what was anticipated by the market, prices started to stabilize and even slightly rise after falling just below the 20,000 yuan/mt line. Cost constraints were the main cause of this.
Butadiene, a key raw material for the C4 process ADN/HMDA, has been steadily increasing since the start of the year, as the accompanying chart illustrates. By mid-May, it had accelerated to 13,500 yuan/mt after stabilizing at 11,500 yuan/mt. The C4 process ADN is under severe cost pressure; since the year’s beginning, the cost of butadiene alone has increased by 3,500–4,000 yuan/mt. The robust demand in the rubber market this year, which indicates potential for the full year, is a contributing factor to butadiene’s growth, in addition to the restart of the ADN plant in Tianchen.
