Asia’s Oct capro contracts settle at $110/tonne higher than Sept

11 October 2012 04:13  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s October caprolactam (capro) contracts were settled at $110/tonne higher month on month, because of firmer demand and rising feedstock costs, market participants said on Thursday.

Contracts for October are said to have settled at $2,490-2,500/tonne CFR NE Asia in both Taiwan and China, according to market sources. 

September capro contracts were settled at $2,380-2,390/tonne CFR NE Asia.

“We have achieved our target for a minimum price of $2,490/tonne CFR NE Asia for October contracts,” a northeast Asian seller said.

The seller added that with feedstock benzene costs rising recently, a minimum $2,490/tonne CFR NE Asia for contract prices was necesary to cover feedstock costs and earn higher margins.

“I expect spot prices to rise further in the coming weeks, in line with contract prices. A gap of at least $300/tonne between capro prices and downstream nylon chip prices is essential to avoid any lost margins,” a Chinese trader said.  

Asian capro spot prices were up by $10/tonne at the low end of the range at $2,430-2,450/tonne CFR NE Asia in the week ended 10 October, while Asian nylon chip prices rose by $20-30/tonne to $2,740-2,780/tonne CFR China week on week, ICIS data showed. 

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

By: Serena Seng

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