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Now that is why I say it is “The Good, the Bad and the Ugly” of the Nylon 66 market in 2019, because
all of the PA66 producers around the world are hoping to see the price of prime PA66 remain at
$2800/mt or higher, but in reality one of them is going to flinch, and then the price of prime Nylon 66
will adjust even lower before we see the end of this scarey movie!
Chemco Services Inc. (CSI) is a Nylon 66 plastic sales and PA66 recycling/service company that
collects and processes nylon off grade pellets, fibers and scrap (lumps/chunks/patties) from the nylon
66 polymer plants and fiber extrusion plants in the USA. CSI’s main office / plant is
located in Cantonment, Florida. Chemco Services only sells nylon materials, and does not handle any
other types of plastic off grade or scrap. 99% of our business is PA66, and all of the nylon CSI sells is
100% post industrial scrap from the polymer plants or fiber extrusion plants in North America. CSI
has 3 plants for collecting and recycling nylon off grade pellets and scrap in the USA. CSI collects and
processes approximately 16,000-17,000 metric tonnes (33-34 million pounds) of Nylon 66 per year.
CSI sells Nylon 66 off grade / wide specification base resin and compounds, baled fibers, post
industrial (PI) regrinds and shred.
CSI sells the following types of PA66 Off Grade Resin / Pellets:
“The Good, the Bad and the Ugly” Nylon 66 market in 2019
Posted on September 9, 2019 by James Gubera
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Below are just a few of the reasons that the Nylon 66 market has slowed down significantly in 2019.
In 2018 many products when possible switched to PA6 resin due to the high price of PA66 in 2019.
The pricing delta between PA66 / PA6 is still to great based on historical data for the 2 materials.
USA vs. China Trade War – There has been anti-dumping duty on PA66 sold in China for years.
Too much PA66 off grade resin being made available for sale at low prices in the spot market.
The slowing automobile sales market around the world in 2019.
Unfortunately, the demand for PA66 starting to slow down in late 2018, and everyone felt that the
market was just slowing down at the end of the year. Then everyone was expecting the PA66 market
to strengthen after the Chinese New Year which did not happen this year. As we know, the PA66
market has never really picked up any real momentum in terms of strong demand for either prime or
off grade pellets in 2019, so we have just watched as the nylon prices have just continued to soften
throughout the year. I am hearing that the price of PA66 off grade natural resin is selling in the Asian
market in the price range of $1.00-$1.05/lb. (USD$2200-$2300/mt) CFR Export Port from the Nylon
66 producers in China. And most Asian buyers expect the price of PA66 off grade resin to go down
even more in the month of September. Due to the low PA66 prices that are being offered from the
Chinese 66 producers it is very difficult to compete in the export market with PA66 B-grade off grade
that is made in the USA.
At this time, the Asian PA66 producers are trying to keep the price of PA66 prime resin in the export
market at or above a price of $1.30/lb. (USD$2800/mt) or higher if possible. The problem is demand
for both prime and off grade PA66 resin is still weak around the world, and the extremely large orders
are few and far between. Business is OK, but not great, and I am sure that everyone hopes to see
the nylon export market pickup and strengthen real soon. One of the challenges the Nylon 66 export
market is facing now is that the delta in the price of PA66 is much greater than the price of Nylon 6.
In the past the price difference between the 2 nylons was typically around $.20-$.25/lb.
(USD$440-$550/mt). In today’s market, the price difference between PA66 and PA6 prime resin in
Flame Retardant (FR)
GF-FR Mixed Color
Post Industrial (PI) Shred / Regrinds
PI Baled Fibers – Bright / Mixed Luster
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