16 November 2012 09:40 [Source: ICIS news]
SINGAPORE (ICIS)--China’s November caprolactam (capro) contracts were settled at $2,380-2,400/tonne CFR (cost & freight) China, $100-110/tonne (€78-86/tonne) lower than October, but contract volumes were cut because of weak downstream demand, market sources said on Friday.
November contract offers from suppliers in Europe and Japan were at $2,550-2,600/tonne in late October, in consideration of firm benzene prices.
However, spot capro prices in China decreased by $160/tonne in October, according to data from Chemease – an ICIS service in China, and end-users said there is still room for spot capro prices to decline further.
As a result, contract discussions reached a stalemate in early November.
“We (sellers and buyers) finally decided to meet each other halfway to avoid greater losses [caused] by delays,” a market source said.
However, some end-users cut down their purchase volumes because of the poor sales of downstream products, the source added.
One of the major contract players in China revealed that it reduced its contract volume by almost half in November.
“Maybe it will force more capro suppliers to think about reducing production [rates] at the end of this year,” a market player said.
($1 = €0.78)
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