North American nylon prices continued to lose ground on weak demand and sombre prospects for a market recovery due to the general economic malaise, sources said the week of 10 March. Considerable attention was focused on developments in the automotive industry, a key downstream segment for nylon consumption. Nylon demand from automotive manufacturers has fallen dramatically over the last several months, and the decline has not been offset by orders from other applications, sources lamented.

Lacklustre demand for US automobiles continued in February, when total sales sank by 45% year over year to 542,797 units, the lowest annualized rate in 27 years, according to statistics released on Tuesday. Year-overyear sales have been down 41 and 45% in the first two months of 2009, respectively, extending the monthly string of stagnant numbers after a 33% sales drop in December. Automakers plan to cut production in a desperate effort to control inventories, with manufacturers expected to produce only 4.1 million vehicles in North America in the first six months of 2009, down 41% from a year ago.

Nylon demand typically picks up in March ahead of the spring production cycle, but this year requirements have been slow to emerge, suppliers said. Nylon producers have consequently adjusted production rates, or idled facilities temporarily to stem inventory build-up.