MRC -- Integrated nylon 6 producer AdvanSix on Friday reported a third-quarter net loss of $8m, compared with net income of $10m in Q3 2022, said the company.
Sales fell 32.6% year on year to $323m while total costs and expenses fell only 28.6% and came in higher than sales.
Sales fell as market-based pricing was unfavourable by 24%, primarily reflecting reduced ammonium sulphate (AS) pricing amid lower raw material input costs and a more stable global nitrogen supply environment.
Nylon pricing was unfavourable due to tough supply and demand conditions.
Raw material pass-through pricing was unfavourable by 8% as a result of a net cost decrease in benzene and propylene.
Overall sales volume decreased about 1%.
AS is a by-product of AdvanSix’s integrated production process. Benzene and propylene are inputs to cumene, which is a key feedstock for the company's products.
We remind, US integrated nylon producer AdvanSix has ended its alliance with biaxially oriented polyamide (BOPA) film maker Oben Group but will continue to support Oben as a resin supplier. Under the alliance, formed in 2019, Oben took on the role of producing BOPA film while AdvanSix managed its commercialisation and distribution in the US and Canada.