Europe April caprolactam rises €160/t on tight supply, benzene

28 April 2010 23:59  [Source: ICIS news]

LONDON (ICIS news)--The European April caprolactam contract has increased by €160/tonne ($211/tonne) because of tight supply, higher benzene costs and strong demand for export to Asia, market sources said on Wednesday.

“I have concluded my April contracts at an increase of €160/tonne,” a major caprolactam consumer said. “Suppliers tell us that Asia is paying unbelievable prices but not so much to stop delivering to European customers.”

The April contract settled at €2,190-2,246/tonne FD (free delivered) NWE (northwest Europe), according to data from global chemical market intelligence service ICIS pricing.

Another major buyer in Europe said: “For April freely negotiated contracts, the situation is really very hard and product is very tight. My average [increase] is €160-165/tonne.”

On the selling side, producers were still citing strong demand in Asia and expected continued tightness in Europe because of DSM’s planned turnaround in May.

“Customers are asking for more product and asking about paying more to get additional material. On top of this we are getting requests from customers we don’t normally supply,” said a caprolactam producer.

The producer said that on average, it increased April contracts by €160-170/tonne.

($1 = €0.76)

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

By: Julia Meehan
+44 20 8652 3214

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