07 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Europe caprolactam (capro) buyers are targeting up to the full upstream benzene August contract price decrease of €32/tonne ($43/tonne).
They argue that weak demand because of traditional August holiday closures is supporting their price targets.
Nevertheless, capro producers are targeting a rollover to restore weak margins.
“One supplier said it’s shooting for a rollover. On the other side [the price of downstream] polyamide is dropping so [that the capro price fall] has to be €20-30/tonne. We are swimming in [downstream] polymer, it's too much. We have too much,” a capro buyer said.
Negotiations are yet to begin in earnest and have been delayed by end user summer holidays.
“I cannot tell you so much as customers are on holiday so we have postponed the conversations. Our intention is to defend the decrease of the benzene,” a producer said.
They are expected to begin in earnest in the third week of the month when players begin to return to their desks.
($1 = €0.75)
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