Asia’s July capro contracts settle $170-180/tonne lower

04 July 2012 08:52  [Source: ICIS news]

BRISBANE (ICIS)--Most of Asia’s July caprolactam (capro) contracts were settled at $2,230-2,250/tonne (€1,762-1,778/tonne), down by $170-180/tonne from the previous month’s settlement, on the back of weakening spot prices and poor downstream nylon (polyamide) demand, market sources said on Wednesday.

The price is on a cost and freight (CFR) northeast (NE) Asia basis. Asia’s June settlements were finalised at $2,400-2,430/tonne CFR NE Asia, according to ICIS data.

Initial offers and selling ideas by producers at $2,320-2,350/tonne CFR NE Asia were lowered in view of the poor market sentiment, producers said.

Other ongoing negotiations are likely to be concluded in the next two days, with buyers aiming to settle at $2,200/tonne CFR NE Asia.

Spot capro prices are being discussed at $2,200-2,220/tonne CFR NE Asia this week on the back of higher energy prices early this week, traders and buyers said.

Spot price discussions were at $2,150-2,160/tonne CFR NE Asia just late last week, they added.  

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

($1 = €0.79)

By: Junie Lin

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