Europe October caprolactam drops €110/tonne

05 November 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--European October caprolactam contracts have been settled at an average reduction of €110/tonne ($143/tonne) on weak demand and lower benzene contracts, producers and consumers confirmed on Wednesday.

“We have seen an average drop of €125-150/tonne in the open market and €70-100/tonne for formal,” a major consumer confirmed, adding that “the market is very long”.

October caprolactam contracts were agreed at a pre-discounted range of €1,904-1,945/tonne ($1,466-1,498/tonne) FD (free delivered) NWE (northwest Europe), down €110/tonne from September, according to global chemical market intelligence service ICIS pricing.

“Caprolactam October contracts were agreed down with benzene at €74/tonne and also €100/tonne,” commented a producer.

Other European producers and consumers said that October caprolactam contracts were agreed at reductions of €70-150/tonne from October.

Price developments in the caprolactam market typically follow movements in the benzene market. The October benzene contract settled at €797/tonne FOB (free on board) NWE, down €74/tonne.

Caprolactam is an intermediate primarily used in the production of nylon 6 fibres and resins. Just over 70% of caprolactam is consumed in the production of nylon fibres with the rest used in engineering resins and films.

($1 = €0.77)

For more on benzene, cyclohexane and caprolactam visit ICIS chemical intelligence
To discuss issues facing the chemicals industry visit ICIS connect

By: Julia Meehan
+44 20 8652 3214

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