Caprolactum price edges down in China

In China, liquid good offers in spot market edged down to US$1,525-1,540 a ton while solid goods fell to US$1,585 a ton in the last week of December.

Sinopec announced January contract nomination at US$1,585 a ton for liquid goods while DSM Nanjing announced nomination at US$1,590 a ton for liquid goods and US$1,625 a ton for solid goods.

Asian markers, the SE and FE markers were pegged at US$1,240-1,260 a ton while December contract price for high-end goods were not announced.

Caprolactum values eased this week on languishing demand and expectation of increased supply, thus ignoring the recovery in raw materials benzene values.

The markets were apparently approaching on a bearish note on softening demand, with producers operating at higher rates. Market participants were living hand-to-mouth with lower buying indications.

Downstream demand weakened with run rates at polymerization units declining and inventory of 8 days’ worth. Run rates at yarn makers also slipped with inventory higher at 25-30 days’ worth.

Courtesy: Weekly PriceWatch Report