Caprolactum prices plunge amid weak demand

Asian markers, the SE and FE markers fell US$60 a ton in the first week of January.

In China, liquid good offers in spot market edged down US$65 a ton on the week with selling indications at US$1,460 a ton, delivered. Solid goods fell US$95 a ton.

Sinopec retained its January contract nomination at US$1,570 a ton for liquid goods while DSM Nanjing was at US$1,575 a ton for liquid goods and US$1,610 a ton for solid goods.

Caprolactum prices eased that week on languishing demand, cheaper raw material and expectation of increase in supply.

In China, liquid caprolactum offers in spot market edged down. Market participants were operating on hand-to-mouth volumes with lower buying indications.

Mainstream offers for solid were sparse. Nominations for January contract were not announced.

Demand was weak as run rates at polymerization units declined and inventory level stayed at 8 days’ worth.

Nylon yarn makers operating rate also slipped with inventory rising to 28 days’ worth.

With current reduced supply, Caprolactum prices were approaching on a bearish note on significantly poor demand.

Courtesy: Weekly PriceWatch Report