11 February 2013 00:00 [Source: ICB]
Negotiations for February caprolactam (capro) contracts in Asia may only be concluded after the Lunar New Year holiday amid a wide buy-sell gap in pricing ideas quoted by buyers and sellers, market sources said on 30 January.
Producers' offers were heard at $2,550-2,600/tonne (€1,887-1,924/tonne) CFR (cost & freight) northeast (NE) Asia, up by $100-120/tonne from January settlements.
Producers said they need to restore squeezed margins stemming from upstream benzene price rises.
January capro contracts in Asia settled $120/tonne higher month on month at $2,450-2,480/tonne CFR NE Asia, according to ICIS.
Key buyers, on the other hand, are not willing to commit to such prices, because of concerns that the downstream demand is weak as a result of the poor macroeconomic conditions that are limiting consumer purchasing power.
'It is hard to negotiate as key buyers are considering a rollover or modest increase of $50/tonne from January at most,'' said a seller.
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