26 August 2009 23:59 [Source: ICIS news]
LONDON (ICIS news)--August European caprolactam contract prices settled up €100/tonne on tighter supply, returning demand and a rise in the upstream benzene monthly contract price, buyers and sellers said on Wednesday.
The contract was finalised at a pre-discounted price of €1,799-1,855/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Nevertheless, not all sources were in agreement with some producers saying they had managed to push through increases of up to €130/tonne ($186/tonne), due to low availability of material.
Tight supply was being caused by production problems and cutbacks, buyers and sellers said.
August textile and polymer demand was better than expected and this would further increase in September as buyers returned from holiday shutdowns. Supply was expected to remain tight, sources said.
“We expected a summer break in textiles, but this didn’t really happen,” a caprolactam producer said.
Upstream benzene values have fallen $255-275/tonne from the August contract price of $1,045/tonne and September contract prices were expected to weaken.
As a result, caprolactam producers were unable to forecast the direction of September prices.
($1 = €0.70)
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