In the last week of August, spot offer for liquid goods in China were down US$15-30 a ton and discussions were down US$30-45 a ton. Asian markers, the SE and FE declined US$80 a ton. Sinopec lowered its settlement for August which was down US$25 a ton from nomination for liquid while DSM Nanjing’s August price was down US$220 a ton from nomination for solid goods.
In China, the moderation in spot values saw Sinopec lower its August contract settlement for liquid goods while DSM Nanjing settled its August price down from nomination. Given bearishness of feedstock and insipid demand, caprolactum markets are likely to remain range bound at the low levels in coming weeks.
Caprolactum prices softened sharply amid poor confidence and reflecting weaker benzene. Demand was bearish in the downstream and offers for low-end liquid and solid goods sobered while mainstream prices were seen falling amid thin trades. Run rates of polymerization units were maintained but inventory level picked up to 9 days’ worth while nylon textile yarn makers were running at low capacity, with inventory down to 26 days’ worth.
Courtesy: Weekly PriceWatch Report
