01 September 2010 06:22 [Source: ICIS news]
By Junie Lin
Spot capro prices edged up $20-40/tonne week on week to $2,570-2,600/tonne (€2,030-2,054/tonne) CFR (cost and freight) northeast (NE Asia)/China/
The expected lifting of government restriction on energy use by industries in
This energy restriction would last longer than initially expected and would only be lifted in late September or early October, they said. Current nylon yarn production in the province averaged just about 60% of capacity, market sources said.
Caprolactam sellers had raised their September contract offers by $80-100/tonne from August levels to $2,600-2,610/tonne CFR NE Asia, market sources said. In August, contract prices were at $2,500-$2,530/tonne CFR NE Asia, according to ICIS.
Most players in the nylon industry, however, were only hoping for a marginal increase to not more than $2,550/tonne CFR NE Asia, industry sources said.
But price pressures were expected to build up from October, when a number of major caprolactam plants would undergo turnarounds, tightening the supply available in the market, market sources said.
Meanwhile, China Petrochemical Development Corporation (CPDC) intends to shut its 180,000 tonne/year unit in
Caprolactam is an intermediate primarily used in the production of nylon 6 fibres, plastics and other polymeric materials. Nylon 6 is widely used in the manufacture of hosiery, knitted garments, threads, ropes, filaments, nets and tyre cords.
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