03 July 2013 16:42 [Source: ICIS news]
SINGAPORE (ICIS)--Several producers have started posting offers for July caprolactam (capro) at $2,450-2,480/tonne, a $30/tonne increase from initial offers quoted for June contract cargoes from some producers, according to market participants.
Japanese producers offered July contract cargoes at the high end of the range at $2,470-2,480/tonne CFR (cost & freight) NE Asia (northeast Asia), reflecting a $20-30/tonne increase from initial offers of June contract cargoes, at $2,450/tonne CFR NE Asia.
Meanwhile, a few European producers held their initial offers at $2,450/tonne CFR NE Asia, the same level as the majority of initial offers from the previous month.
However, such levels were deemed too high, according to capro buyers.
"It is impossible to accept offers at this price," said a major capro buyer. "Even a rollover from the June contract settlement price is considered high, as benzene prices are falling."
Benzene is the feedstock in the production of capro. By midday, benzene prices were at $1,185-1,193/tonne FOB (free on board) Korea.
Buying ideas were capped at $2,370/tonne CFR NE Asia, said a few major buyers.
June capro contracts in Asia were finalised at $2,355-2,370/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.More offers were expected to be heard in the following week.
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