Europe June capro increases an average of €75/t

02 July 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--The Europe June caprolactam contract price was agreed at an average increase of €75/tonne ($119/tonne) from May on the back of firmer upstream benzene, caprolactam producers and consumers said on Wednesday.

“We have seen €70-80/tonne increases,” a major producer said, while another spoke of hikes of "at least" €80/tonne.

The June contract price, agreed on a free delivered (FD) northwest Europe (NWE) basis, settled at €2,019-2,060/tonne ($3,205-3,270/tonne), according to global chemical market intelligence service ICIS pricing.

Consumers of caprolactam boldly resisted attempts by producers to increase June contracts by €97/tonne, the June benzene increment, because of weaker than expected downstream demand.

“Discussions were difficult for us, even today we are still talking with one supplier,” an Italian textile manufacturer said.

The source said that so far accounts had at closed at an average of €70/tonne, although some June business was agreed below this.

A large manufacturer of high temperature polyamides said that contracts were closed just below €80/tonne.

“We were at €70, while our supplier was at €80/tonne, volumes are not bad; it’s just the price,” the buying source added.

Such comments were echoed throughout the market with producers and consumers saying the volumes were acceptable, although down when compared to previous years.

Buying and selling sources all agreed that the main issue for the caprolactam market was record raw material and energy costs and how these could be successfully passed on downstream.

($1 = €0.63)

For more on benzene and caprolactam visit ICIS chemical intelligence
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By: Julia Meehan
+44 20 8652 3214

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