China's Oct capro prices fall on softer buying ideas, new plants
29 October 2012 06:24 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>China’s domestic prices for caprolactam (capro) have declined in October, because of softer buying ideas from the downstream sector and increased output, industry sources said on Monday.
Domestic spot prices for capro in east China fell by yuan (CNY) 1,150/tonne ($184/tonne) from 1 October to CNY18,000/tonne on 26 October, according to Chemease, an ICIS service in China.
The main factor for the price decline is the rising domestic supply of capro, a market player said.
The domestic capro plant capacity in China has been raised to 1.115m tonne/year after Shandong Fangming Chemical started up its new 100,000 tonne/year capro line in Heze city in early October.
The country’s production capacity of capro in 2012 has nearly doubled from 590,000 tonnes/year in the same period a year ago.
However, the expansion in the downstream sector in China has not matched the increased capacity of capro, a market player said. The downstream sector increased its production by 180,000 tonnes/year as of October.
Domestic capro suppliers are facing increased competition, with new plants expected to start up in the coming months.
Sinopec Baling is conducting trial runs at its new 100,000 tonne/year capro line in Hunan province to prepare for on-spec production in end-November.
Shandong Haili has yet to confirm the start-up date for its new 200,000 tonne/year capro plant at Yancheng in Jiangsu province.
($1 = CNY6.26)By: Angeline Zhang
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