17 October 2008 11:24 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian caprolactam is trading up to $150/tonne lower this week as persistently weak downstream demand and declining upstream benzene values battered market sentiment, market players said on Friday.
Transactions were mainly at $1,850-1,950/tonne CFR (cost and freight) ?xml:namespace>
This followed a fixture reported at $1,950/tonne CFR China LC (letter of credit) 90 days for Korean origin cargoes at the end of last week, according to global chemical market intelligence service ICIS pricing.
"Demand from the downstream nylon chip sector remained weak as most end-users are operating at reduced rates," a trader said.
"In addition, inventory levels of buyers remained healthy and they can afford to wait a few months without purchasing substantial quantities."
The downstream nylon chip market has remained sluggish since the beginning of August, mainly due to the weakened exports in the key
"Sales volumes have been very limited," a regional producer said. “We are now far from the usual sales volumes of around 6,000-7,000 tonnes/month.”
Caprolactam is a key feedstock of nylon 6.
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