08 October 2013 18:05 [Source: ICIS news]
BERLIN (ICIS)--European caprolactam (capro) contract price negotiations for October have begun with early targets emerging on Tuesday.
Producers are seeking a rollover in October contracts despite a fall in the upstream benzene October contract price of €51/tonne, they said on the sidelines of the 47th annual European Petrochemical Association (EPCA) meeting.
Producers argued that a rollover is necessary to improve margins, which are at a low level.
Buyers are targeting the full benzene cost decrease, they said on the sidelines of EPCA, because of their own downstream margins and weak demand.
Views on demand are divided depending on end-use industry. Premium automotive consumption remains strong because of exports to developing countries – particularly China – driven by upward social mobility.
Other segments, such as fibre, have been heavily impacted by the macroeconomic downturn.
The annual EPCA meeting runs from 5-9 October.
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