Caprolactum prices plunge on raw material cost pressure

Asian markers for caprolactum, the SE and FE declined US$100 a ton in the first week of May while high?end contract price for April remained unsettled. In China, spot liquid caprolactum offers softened US$100 a ton while solid goods were down US$85 a ton on the week.

Caprolactam markets in Asia bowed to bearish cost pressure on the back of falling benzene which sent players on the sidelines. In China, offers for liquid goods in spot market declined sharply while Sinopec cut its May nomination taking cue from falling spot values. Demand remained stagnant as run rates at polymerization units and yarn makers were at 70%.

Sinopec cut its May contract nomination by US$95 a ton from previous nomination for liquid while Fibrant retained May contract. European April contracts rose Euro80 a ton.

In Europe, caprolactam players agreed for an increase in April contracts on the back of good supply/demand dynamics of the market while May talks slowly unfolded.

Courtesy: Weekly PriceWatch Report

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