Taiwan’s Li Peng cuts nylon output on squeezed margins

25 September 2012 10:08  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Li Peng Enterprise further cut average production rate of its polymerization lines to 80% capacity in the week because of persistently squeezed margins, a company source said on Tuesday.

“Raw material caprolactam (capro) prices continue to increase and there is no way for [nylon] producers to pass on the higher costs given the current economics,” the source added.

Li Peng Enterprise operates five lines with a combined polymerization capability of around 400,000 tonne/year and was running the lines at a reduced rate averaging 90% capacity previously, the source said.

During the week, one major Japanese capro producer announced its offers for October contract at $2,570/tonne (€1,980/tonne) on a CFR (cost & freight) basis, according to its customers.

This represents an increase of $180-185/tonne from September settlements.

Li Peng Enterprise is one of Asia’s biggest nylon chip and filament producers.

($1 = €0.77)

By: Yu Guo
+65 6780 4359

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