In China, offers for liquid goods edged up US$25-30 a ton in the second week of September, and discussions were up US$10-20 a ton. Asian markers, the SE and FE were stable during the week. Sinopec announced September contract price which was up US$125 a ton from August settlement for liquid goods while DSM Nanjing’s nomination was up US$10 a ton from August for solid goods.
Caprolactum prices rebounded slightly amid increased enquiries reflecting mild upswing in benzene cost. Demand also increased in the downstream as run rates at polymerization units increased to 70 per cent with and inventory level falling to 6 days’ worth.
Nylon textile yarn makers increased run rates to 60 per cent with inventory still at 27 days’ worth, and industrial yarn producers were running at 60-65% capacity. Given the rally in feedstock benzene cost and improved demand mixed with cautious sentiment, caprolactum markets are likely to rebound mildly in coming weeks.
Courtesy: Weekly PriceWatch Report
