05 September 2012 23:59 [Source: ICIS news]
By Renee Lawrence
LONDON (ICIS)--European caprolactam (capro) August contract prices have settled at €1,965-2,025/tonne ($2,456-2,531/tonne) FD (free delivered) NWE (northwest Europe), up €40/tonne from July, market players confirmed on Wednesday.
Market participants are now actively negotiating their September contracts, with some suppliers seeking a minimum €30-40/tonne increase.
Capro suppliers argue that they were not able to pass on the full upstream benzene increase in August, and will have to recover some of this in September – despite the September benzene contract price falling.
The European benzene contract for September was agreed late last week at €1,026/tonne FOB NWE, down €35/tonne from the previous month.
However, capro buyers in Europe are seeking a rollover for September contracts. In some cases, buyers want suppliers to pass down the full decrease in the September benzene feedstock cost.
Capro demand is reportedly steady, and there is talk of restocking taking place among end-users as they resume factory operations after the summer holiday period.
In any case, downstream nylon producers are hoping demand will pick up, so they would be able to better absorb any increases in the price of feedstock capro.
($1 = €0.80)
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