USES

The two major forms of nylon (polyamide) are type 6 and type 6,6. Nylon 6 is made from caprolactam (capro), which can be produced from benzene via cyclohexane or phenol.

Approximately 24% of nylon 6 is consumed in engineering resins, while the rest is used in nylon fibres.

Nylon fibres are made into textile, carpet and industrial yarns. Nylon resins are used in engineering plastics, with applications in automotive, fabric, carpeting, sportswear, recreational equipment, electronics and industrial components, as well as films for food packaging.

Nylon 6,6 is made from adipic acid and hexamethylene diamine (HMDA), which can be produced from adiponitrile (ADN) made from butadiene (BD) or, less often, propylene.

Nylon 6,6 is used predominately in the engineering plastics sector because it is tough and has good electrical insulating properties and noise dampening characteristics. That is why it is widely used for automotive applications.

SUPPLY/DEMAND

Nylon demand continues to grow because of its widespread use in the textiles, electronics, packaging and automotive industries. Additionally, the push for vehicles to be more fuel-efficient and environmentally friendly is expected to continue driving nylon demand.

Nylon consumption is expected to rise by around 2.5-3.5% by volume over the next few years. Specialty grades for niche applications may see even higher rates of growth.

Global nylon operating rates on average are said to be between 70-80%, suggesting that little additional capacity will be needed over the next few years.

On the supply side, availability of feedstock capro is said to be tight, which may result in some limitations on nylon 6 availability. However, no major supply disruptions have been heard in the US recently.

The nylon 6,6 market is more balanced, with sources stating that supply and demand balances are likely to remain balanced through the second half.

PRICES

Prices in the freely negotiated nylon 6 and nylon 6,6 markets witnessed considerable increases in the first half of 2017, tracking sharp upward movements in feedstock costs for benzene, butadiene and propylene.

Although some fresh increase announcements were recently announced for nylon 6, most participants are expecting freely negotiated prices for nylon 6 and nylon 6,6 to hold steady over the next few months now that feedstock costs have begun to change direction.

One participant stated that domestic prices in the US are likely to remain steady in the next few months while sellers looking to export to Asia may implement some reductions on their prices to maintain competitiveness in their target export markets.

The ICIS cost-plus methodology is mostly determined by monthly contract price movements of raw materials.

TECHNOLOGY

Nylon 6 is made from reacting capro with water and a molecular mass regulator, such as ethanoic acid. These elements are poured into a reaction vessel and heated under nitrogen at 500°K (227°C). An intermediate, aminocaproic acid, is produced. The process then undergoes condensation to polymerise the molecules.

For nylon 6,6 production, ADN is made from BD or propylene and then converted to HMDA.

Then, HMDA is mixed with adipic acid, which is made from benzene, to form a salt. Ethanoic acid is mixed into a solution with the salt, and the mixture is heated to about 500°K. As pressure develops, the temperature is raised to 540°K, and the steam bled off. The pressure is reduced, and the polymer is extruded under nitrogen to yield a lace, which is then granulated.

OUTLOOK

Nylon demand is expected to remain largely steady into the second half of the year in the US.

The construction market has been robust throughout 2017, although this has been partially offset by a year-on-year slowdown in automotive demand.

Participants, especially those looking to export material, will continue to track developments in Asia to get an idea of the global demand for nylon.

Inventories for nylon chip and yarn in Asia were heard to be balanced at the start of the third quarter while participants added that feedstock caprolactam supply may lengthen during the third quarter owing to some capacity expansion plans.