Thai Caprolactam to halt exports on expanded nylon plant startup

03 November 2010 08:01  [Source: ICIS news]

SINGAPORE (ICIS)--Thai Caprolactam, a subsidiary of Japan-based Ube Industries, will halt exports of caprolactam once its downstream nylon plant in Rayong starts up next month following an expansion, a company source said on Wednesday.

The company’s 110,000 tonne/year caprolactam plant on the same site was currently operating at 100%, he added.

“There will be zero exports because the production will be kept for the downstream plant,” the source said.

The nylon plant has been expanded to 75,000 tonne/year from 25,000 tonne/year previously, he said.

“The (nylon) plant will start up in the second week of November,” the source added.

Caprolactam is primarily used in producing nylon.

With Thai Caprolactam ceasing exports, caprolactam supply will get even tighter in Asia, market players said.

Besides a peak turnaround season, caprolactam prices rose to $2,730-2,740/tonne CFR NE Asia this week from $2,680-2,720/tonne (€1,929-1,958/tonne) CFR (cost and freight) NE (northeast) Asia last week, due to strong demand during nylon manufacturing season, traders said.

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By: Felicia Loo



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