The nylon industry had enjoyed a particularly favorable situation over the past couple of years. All of that is about to change, however, as 2019 is expected to be a year of more volatility.

In terms of ADN (adiponitrile) availability, 2019 may be an even tougher year than 2018. Shortage of ADN has been aggravated by several major technical and environmental forces. Understanding how the supply and demand for ADN will develop in 2019 and beyond is essential for those who both directly and indirectly depend on this essential material.

The caprolactam (used to make PA 6 EP, filament and fiber) market is becoming increasingly regional, which has a significant impact on prices and margins. This market is also heavily dependent on the cost of production directly related to the price of benzene. As a result, a combination of understanding and forecasting the cost of raw materials, including benzene, and the supply/demand balance of caprolactam and PA 6 will remain a priority for 2019.

The significant increase in polymer prices has dramatically changed the criteria for choosing materials for industrial, textile fiber applications and engineering plastics. The intensity of winter in China and the policy update to include a temporary closure of production units have both had an immediate impact on the availability and prices of cyclohexanone, adipic and caprolactam.