04 October 2013 11:25 [Source: ICIS news]
SINGAPORE(ICIS)--Offers for caprolactam October contract in Asia increased because of tighter supply amid scheduled turnarounds at regional facilities, market sources said on Friday.
Initial offers for October contract cargoes from Japan and Europe rose to $2,430-2,500/tonne (€1,774-1,825/tonne) CFR (cost and freight) NE (northeast) Asia, up by $10-50/tonne from the initial contract offers for September cargoes, they said.
September capro contracts were settled at $2,370-2,400/tonne CFR NE Asia for major buyers and suppliers in the market, $50-60/tonne higher than the concluded price for August contracts.
In Japan, Sumitomo Chemical is due to shut its 180,000 tonne/year capro plant in Niihama, Ehime prefecture, in mid-October and the plant will remain off line until end of November.
Meanwhile, one of Ube Industries’ 45,000 tonne/year capro lines is due to maintenance this month in early October.
In Taiwan, China Petrochemical Development Corp’s (CPDC) 100,000 tonne/year capro line in Toufen is due for upgrade and will be shut for around four days from 7 October.
Higher contract offers for October are also supported by firm spot prices given tight availability of spot cargoes to the key China and Taiwan markets.
On 2 October , spot capro prices were assessed at $2,370-2,410/tonne CFR NE Asia, up by an average of $35/tonne from early September, according to ICIS.
($1 = €0.73)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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Asian Chemical Connections