Japan’s Dec caprolactam contracts settle at high of $2,800/tonne

08 December 2010 05:25  [Source: ICIS news]

SINGAPORE (ICIS)--December prices for Japan-origin caprolactam were settled higher in the range of $2,800/tonne (€2,100/tonne) in Taiwan and China, in line with recent spikes in spot values, suppliers and buyers said on Wednesday.

The prices surpassed the record prices set in May 2010 by 2.9-3.7%, based on ICIS data.

For Taiwan, Japanese suppliers previously quoted offers at $2,820-2,830/tonne CFR (cost & freight) NE (northeast) Asia, while offers to China were slightly higher at $2,830-2,850/tonne CFR NE Asia, they said.

“These prices came as no surprise," one Japanese supplier said. The reaction was echoed by several traders and buyers.

However, December prices for Europe-origin caprolactam, which also supplies contract cargoes to Taiwan and China, had not been settled so far because buyers from the key downstream nylon industry had not started negotiations with the Europeans, market players said.

“No word from the Europeans yet,” said a major caprolactam buyer.

Caprolactam is an intermediate primarily used in the production of nylon 6 fibres, plastics and other polymeric materials.

Producers of caprolactam in Asia include Japan’s Ube Industries and Sumitomo Chemical and Taiwan’s China Petrochemical Development Corp (CPDC).

($1 = €0.75)

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By: Junie Lin

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