Asia capro buyers not keen on April contracts despite lower offers

11 April 2013 06:55  [Source: ICIS news]

BRISBANE (ICIS)--Asian caprolactam (capro) buyers are not inclined to start negotiations for April contracts even though producers have cut their offers by more than $50/tonne (€39/tonne), market players said on Thursday.

A European producer was heard offering $2,500/tonne CFR (cost and freight) NE (northeast) Asia, while a Japanese producer is quoting a price of $2,525/tonne CFR NE Asia for April contract.

These contract offers are about $200/tonne higher than the current spot prices, which were assessed at $2,280-2,330/tonne CFR NE Asia in the week ended 10 April, according to ICIS data

Most buyers are reluctant to procure capro on a contract basis in view of the disappointing sales in downstream nylon (polyamide) chips sales, market sources said.

Hardly any bulk orders were generated for nylon chips in the past two months, they said.

March capro contracts in Asia were concluded at $2,500-2,580/tonne CFR NE Asia, according to ICIS.

Capro is an intermediate product that is primarily used in the manufacture of nylon 6 fibres, plastics and other polymeric materials.

($1 = €0.77)

By: Junie Lin

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