01 October 2013 04:24 [Source: ICIS news]
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SINGAPORE (ICIS)--September caprolactam (capro) contracts in Asia were concluded at $2,370-2,400/tonne (€1,754-1,776/tonne), up by $50-60/tonne from August’s settlement, market sources said late on Monday.
The price is on a cost-and-freight (CFR) northeast (NE) Asia basis.
Capro producers raised their September contract prices to maintain margins amid rising cost of feedstock benzene.
Rising spot capro prices in the key China market caused by tight availability of cargoes underpinned the higher contract prices for September, market sources said.
On 25 September, spot import prices in China were at $2,370-2,410/tonne CFR China.
Supply, particularly to China and Taiwan, is tighter as a number of major capro facilities have scheduled maintenance in October.
Japan’s Sumitomo Chemical will be shutting its 180,000 tonne/year capro plant in Niihama, Ehime prefecture, in mid-October until end of November.
Taiwan’s China Petrochemical Development Corp (CPDC) will be shutting down its 100,000 tonne/year capro line in Toufen for around four days of upgrading from 7 October.
Meanwhile, Japan’s Ube was heard to be operating its capro plant in Yamaguchi prefecture at just half its capacity because of a mechanical fault at the unit. One of the two 450,000 tonne/year lines at the plant is scheduled for maintenance in October, according to a source close to the company.
Offers for October capro contracts are likely to be announced when the Chinese market re-opens after a week-long National Day celebration.
($1 = €0.74)
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