28 October 2009 23:59 [Source: ICIS news]
LONDON (ICIS news)--European October caprolactam contracts have settled at an average decrease of €35/tonne ($51/tonne) because of lower benzene prices, producers and consumers said on Wednesday.
The October caprolactam contract settled at a pre-discounted price of €1,714-1,770/tonne FD (free delivered) NWE (northwest ?xml:namespace>
The October benzene contract settled at €505/tonne FOB (free on board) NWE, down €71/tonne from September.
“I closed October caprolactam contracts at a decrease of €40/tonne at one account, but it was down €30/tonne with others," one of the largest European buyers said.
A second caprolactam buyer said: “There is no problem with supply and we have increased our needs because demand is better on nylon 6 compounds. We agreed minus €26/tonne for October when compared to September.”
A third buyer, selling to the carpet and textile sectors, confirmed that it closed its October contracts at a decrease of €25-30/tonne.
“We got a reduction of €25-30/tonne and in some cases we got a little more around €32/tonne. My feeling is that demand is getting better in both main applications, carpets and textiles, and I have experienced no problem getting material,” the buyer said.
On the selling side, a major producer confirmed that on average October contract prices settled down €35/tonne.
“A 50/50 split was the most realistic settlement although at the start some buyers were asking for the whole €71/tonne [the October benzene price reduction]”.
Meanwhile, a buyer who was still in negotiations said: “Caprolactam producers got the upper hand last month so I am still targeting more than half the benzene. I want [a reduction of] €45/tonne,”
Producers and consumers of caprolactam described demand as healthy. Buyers said that they had not experienced any problems with supply.
Major European caprolactam producers include BASF, Domo Caproleuna, LANXESS and DSM.
($1 = €0.68)
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