APIC ’08: Thai Capro sees weaker year on crude

28 May 2008 04:27  [Source: ICIS news]

SINGAPORE (ICIS news)--Thai Caprolactam expects a weaker 2008 financial performance and a “down-sliding of profits” compared with 2007 on high upstream feedstock costs from the crude oil surge, a senior company official at Japan's Ube Group subsidiary said late on Tuesday.

"In 2007, we enjoyed a historical good performance but for 2008, we can’t keep up the good results as upstream prices are simply crazy," said the source on the sidelines of the Asian Petrochemical Industry Conference (APIC).

June is a headache for caprolactam producers considering the steep raw material prices and rising utility and operation costs, the source said, noting that downstream nylon producers might be unable to cope with the price increments which might ultimately filter down to them.

May caprolactam contract prices were largely rolled over from April at $2,500-2,510/tonne (€1,575-1,581/tonne) CFR (cost and freight) Northeast Asia.

Producers feel a hike in June prices could be possible in view of continuously rising upstream benzene prices which jumped $45/tonne from the week earlier to $1,265-1,275/tonne FOB Korea on crude gains, according to global chemical market intelligence service ICIS pricing.

($1=€0.63)

ICIS and The Chemical Daily have produced an official 84-page special publication on Asian petrochemicals for the APIC event
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By: Serene Cheong
+65 6780 4359

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