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Nylon-6
& Nylon-66
*Millions of pounds per year Nylon-6 and Nylon-6/6. Nylon-6 is produced by
the reaction of caprolactam with water (producing the intermediate,
aminocaproic acid), and then polymerized by condensation. Nylon-6/6 is
produced by reacting adipic acid with hexamethylenediamine.
Last year BASF traded its nylon fibers business for Honeywell’s nylon
resins business. The two companies also entered into a long term deal under
which BASF will supply Honeywell with nylon chips from its plant in
Freeport, Tex., and Honeywell will supply BASF with specialty nylon and
nylon copolymers from its plant in Chesterfield, Va. Among other properties
exchanged within the deal, Honeywell obtained BASF's fiber production plants
at Anderson and Clemson, S.C. Honeywell named its new business unit
Honeywell Nylon.
In March of 2002, Solutia and Dow Plastics cancelled their nylon resins
marketing agreement that was initiated in January of 1999. Apparently the
anticipated synergies between the Dow product portfolio and Solutia’s
nylon resins failed to materialize. Under the deal, Solutia produced nylon
resins at its Pensacola, Fla. facility and Dow was responsible for
compounding and marketing the products. New profile, 1/19/04.
DEMAND
2001: 3,050 million pounds; 2002: 3,145 million pounds; 2006: 3,485 million
pounds, projected. Demand equals production plus imports (2001: 195 million
pounds; 2002: 235 million pounds) less exports (2001: 550 million pounds;
2002: 655 million pounds). GROWTH
Historical (1997 - 2002): -3.3 (negative) percent per year; future: 2.6
percent per year through 2006. PRICE
Nylon-6
Historical (1997 - 2003): High, $1.47 per pound, aver. ann., inj. mold.
grade, bulk, Gulf; Low, $1.23, same basis. Current, $1.23 to $1.36, same
basis.
Nylon-6/6
Historical (1997 - 2003): High, $1.64 per pound, aver. ann., inj. mold.
grade, bulk, Gulf; Low, $1.38, same basis. Current, $1.38 to $1.46, same
basis. USES
Nylon-6: Textile and industrial fibers, 73 percent; injection molding resins
(including automotive/truck parts, electrical parts, consumer articles), 15
percent; extrusion resins (including film and coatings, non-textile
monofilament, tubing and pipe), 12 percent.
Nylon-6/6: Textile and industrial fibers, 76 percent; injection molding
resins (including automotive/truck parts, electrical parts, consumer
articles), 22 percent; extrusion resins (including film and coatings,
non-textile monofilament, tubing and pipe), 2 percent. STRENGTH
Nylon resins belong to a group of high-performance plastics often referred
to as engineering thermoplastics. These materials are noted for their
outstanding properties, including high tensile strength; excellent abrasion,
chemical and heat resistance; and low coefficient of friction. Thus, they
have particular utility in performing mechanical duties that traditionally
relied on metal parts.
Nylon resin consumption saw a slight decline beginning in 2000 and
continuing through 2001, compared with previous years’ above GDP growth.
Demand turned around in 2002 and though the data is not in yet for 2003,
last year’s demand appears to have been quite robust for the nylon resins
business. The automotive market is the largest single market for nylon resin
compounds. This sector consumes 45 percent of the Nylon-6 and Nylon-6/6
resin material. In recent years much of this growth has been driven by new
under-the-hood applications such as tanks, reservoirs, covers and manifolds.
Nylon resin demand growth is forecast to be 5 percent per year through 2006.
WEAKNESS
After reaching a peak in 1997, domestic consumption of nylon fibers has
decreased every year since, recovering slightly in 2002 after the great
recessional dip of 2000 - 2001. Nylon fiber demand is linked to the dynamics
of the construction industry, available consumer disposable income and the
strength of the domestic manufacturing and automotive industries. In recent
years, the apparel and industrial sectors were impacted by increased imports
of low-cost finished goods while the carpet segment remained essentially
constant. However, in 2000 – 2001 carpet demand for nylon fibers declined
as the overall economy slowed. OUTLOOK The nylon market remains under pressure from high energy and raw material costs as well as the migration of the garment industry to Asia. That portion of the fiber business that continues to do modestly well is carpets. Industrial carpets softened during the recent recessional period, but have come back since as a moderate growth area. For the forecast period, fiber applications, which are primarily industrial and consumer carpets, should grow at 1.8 percent annually. Automotive and other resin applications will do substantially better, turning in 5 percent annually. Overall, the composite growth rate for nylon-6 and nylon-6/6 for all application areas is forecast to be 2.6 percent per annum.
HISTORICAL DATA
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