15 October 2008 15:42 [Source: ICIS news]
By Julia Meehan
“Everybody is adjusting production to sales and we produce what we sell, ship and export,” a source at DSM said. “At the moment the reduction is about volume, but look around the corner and the next discussions will be about cost.”
The DSM source declined to give exact operating rates but confirmed that “it’s a substantial reduction, more than 25%”.
DSM produced a total of 595,000 tonnes/year of caprolactam at its sites in ?xml:namespace>
Major producer BASF - which had a total European and
“We have adapted production to the market situation and we are running at 70% on a global basis,” said a BASF spokesperson.
Another producer, Domo Caproleuna said at the end of September it was forced to reduce operating rates at its 140,000 tonne/year facility in
A major buyer of caprolactam and producer of nylon 6 said that it was “running far from a 100%”.
“The problem is demand and we saw some order cancellations. Customers are waiting until next year,” added the buyer.
As a result of the weaker demand, high stocks and €74/tonne ($101/tonne) drop in the value of main feedstock benzene, caprolactam consumers were talking about a decrease in excess of €100/tonne for October volumes.
A major manufacturer of fibres and yarns said that it was pushing for “at least a €150/tonne decrease”.
“Automotive is down with demand off 30% and there is no demand for white appliances,” added the source.
Another major caprolactam consumer said that it hoped to settle at a decrease of €135/tonne for October.
Producers said that a reduction of €74-80/tonne for contracts was a fair representation of market.
The September caprolactam contract settled at a pre-discounted €2,014-2,055/tonne FD (free delivered) NWE (northwest
($1 = €0.73)
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