NewsFlashEuro Nov caprolactam contracts drop Euro100/mt

23 November 2005 14:10  [Source: ICIS news]

LONDON (ICIS news)--European November caprolactam contracts were settled down Euro100/tonne from October due to the lower benzene settlement, softer Asian spot and contract prices and lower demand in Asia, buyers and sellers said on Wednesday.

November caprolactam contract prices in Europe were assessed at Euro1,525-1,625/tonne, FD NWE (free delivered Northwest Europe), by global price reporting and market intelligence service ICIS-LOR.

Caprolactam prices have now returned to September levels as the Euro100/tonne gained in October on the back of high raw material costs and a tighter market caused by production problems in Europe and the US was given back.

Asian spot prices fell rapidly throughout October and November due to deteriorating market conditions there and lower bids and offers. Spot prices were last assessed at $1,650-1,700/tonne CFR (cost and freight) Northeast Asia, down $50-80/tonne from last week, according to ICIS-LOR. At the same time, November contracts were settled down $200/tonne from October, at $1,850/tonne CFR NE Asia, due to weak downstream nylon sales.

European buyers said they would continue to target further drops in December. They said prices should fall due to lower demand expected in the build-up to the Christmas holidays. But producers were targeting a rollover for December and were awaiting the benzene contract price settlement which was expected to be settled at a rollover.

By: Rachel Robson
+44 20 8652 3214

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