Asia capro offers jump $50-100/tonne after China policy rate cuts

06 July 2012 07:54  [Source: ICIS news]

BRISBANE (ICIS)--Spot caprolactam (capro) offers in Asia edged up by $50-100/tonne (€41-81/tonne) on Friday, following China’s recent measure to boost its slowing economy, market players said on Friday.

Offers are currently at $2,300/tonne CFR (cost and freight) NE (northeast) Asia, with discussion levels cited at $2,250-2,280/tonne CFR NE Asia, they said.

In the week ended 4 July, capro prices were assessed at $2,150-2,220/tonne CFR NE Asia, down by $30-50/tonne from the previous week, according to ICIS.

China announced overnight a 31-basis point cut in lending rates that would free up liquidity in its financial system, effective 6 July.

Market sentiment in the capro market is also being buoyed by recent gains made by monoethylene glycol (MEG) – a feedstock used in polyester production.

Polyester is considered a cheaper form of substitute of nylon – the main downstream for caprolactam.

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

($1 = €0.81)

By: Junie Lin

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