Asia caprolactam slips $20-30/t from record high

25 April 2008 08:33  [Source: ICIS news]

SINGAPORE (ICIS news)--Northeast Asian spot caprolactam has slipped $20-30/tonne from recent record high levels amid limited business, producers and end-users said on Friday.

 

Prices were at $2,500-2,530/tonne CFR (cost and freight) NE Asia (northeast Asia) this week, after sellers cut offers to boost sales, according to global chemical market intelligence service ICIS pricing.

 

Sentiment softened as end-users experienced difficulty in passing on costs to the derivative nylon industry, the sources said, adding market confidence was also dented by poor export conditions for nylon products due to the strengthening Chinese yuan.

 

Increased labour costs and stricter credit regulations in the key China market had also capped buying interest, they said.

 

Nevertheless, sellers and buyers largely viewed the slippage as a minor correction as end-users paused for breath following the recent market uptrend.

 

Tight supply and high feedstock and production costs, as well as the absence of new capacity, was expected to keep prices high in the second quarter.

 

Separately, semi-dull grade nylon chips - an important caprolactam consuming segment in northeast Asia - were at $2,730-2,760/tonne CFR China this week, up $10/tonne from last week.

 

Nylon producers have pegged April offers at $2,780-2,790/tonne CFR China but no deals were heard at these levels.

 

For more on caprolactam, visit ICIS chemical intelligence

 

By: Hsin Hun Wan
+65 6780 4359

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