31 October 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European caprolactam (capro) October contracts have settled at a reduction of €15-25/tonne ($19-32/tonne), buyers and sellers confirmed on Wednesday.
The fall was the result of a reduction of €28/tonne in the upstream October benzene contract price.
Buyers had been pushing for more substantial reductions of €50/tonne because of poor demand, but this did not prove possible due to weak margins.
Conversely, producers had targeted increases of up to €50/tonne because of the need to restore profitability. Increases were not possible due to low demand and weak margins further downstream in the nylon 6 market - where October contracts were agreed at a rollover.
A minority of October contracts remain under negotiation, and some buyers continue to hold out for increases of up to €50/tonne. A small number of producers said they had managed to achieve a rollover in October contract prices, but this was not widely confirmed.
Capro consumption is weak because of poor macroeconomic conditions, which have limited end-use demand.
European October capro contract prices were agreed at €1,950-2,000/tonne FD (free delivered) NWE (northwest Europe).
($1 = €0.77)
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