20 February 2013 09:02 [Source: ICIS news]
BRISBANE (ICIS)--A portion of March caprolactam (capro) offers in Asia were heard at $2,650/tonne (€1,988/tonne) CFR (cost & freight) NE (northeast) Asia, $120-140/tonne higher compared with February, key buyers and sellers said on Wednesday.
March offers by a key Japanese producer were heard at $2,650/tonne because of the need to recoup lost margins resulted from the increase in upstream benzene prices.
Another major producer was said to be also offering at $2,650/tonne CFR NE Asia, according to market sources.
‘I am not surprised by this offer; I even think it is too low. A reasonable offer should be at least $2,700/tonne CFR NE Asia,’’ said a separate major capro producer.
The optimal spread between upstream benzene costs and capro prices is likely to be at $1,300/tonne.
At midday, benzene prices were at $1,405-1,410/tonne FOB (free on board) Korea.
February capro contracts in Asia were finalised at $2,510-2,530/tonne CFR NE Asia, according to ICIS.
Capro is an intermediate product that is primarily used in the production of nylon 6 fibres, plastics and other polymeric materials.
Offers by other producers are expected to emerge in the following week.
($1 = €0.75)
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