Aug Europe caprolactam up €100/t on feedstocks, tight supply

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 Europe), according to global chemical market intelligence service ICIS pricing.

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)

For more on caprolactam visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Mark Victory
+44 208 652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly