AlliedSignal Inc. announced Oct. 21 it plans to increase prices for nylon 6 resins by an average of 6 percent, effective Nov. 18. Kevin Byrne, sales and marketing director and interim general manager for AlliedSignal's engineering thermoplastics business, said the company is raising its prices because its costs have gone up. The firm notified its customers of the pending increase, he said.
Byrne said from his Morristown, N.J., office that prices for cumene have risen 21 percent while prices for glass-fiber reinforcements have increased 12 percent since 1995. Cumene is a primary nylon 6 feedstock. Many of the company's products include glass-fiber reinforcements.
Byrne said his company previously absorbed those higher costs, but current market conditions are forcing it to raise prices. The company's line of PET resins is not affected, he said.
Other producers said they are not considering price increases, citing an apparent abundance of nylon resins, especially resins that are recycled and recompounded from scrap fibers and textile applications.
However, Byrne and other nylon producers said makers of virgin nylon are operating at a 90 percent capacity utilization rate in North America, indicating healthy demand. Because of a large swing capacity between the production of nylon resins and nylon fibers at the leading producers, nailing down an exact figure for virgin nylon capacity utilization is difficult.
DuPont Co. of Wilmington, Del., Monsanto Co. of St. Louis, AlliedSignal and Nyltech North America in Manchester, N.H., all increased production of nylon resins in North America in the past two years.