Caprolactam

Caprolactam is an intermediate primarily used in the production of nylon 6 fibres and resins. Caprolactam occurs as white, hygroscopic flakes or crystals with a distinctive odour. It is soluble in water, cyclohexane, chlorinated hydrocarbons and is usually used, stored and transported in liquefied form at about 80°C. Small amounts of caprolactam are also used in cross-linking for polyurethanes and in the synthesis of lysine. Growth in the caprolactam market is dependent on the nylon 6 business, which has suffered from poor profitability. Only Asia is expected to experience reasonably steady growth for nylon 6 and caprolactam. Another problem is that caprolactam production capacity is becoming geographically remote from its customer base. While nylon production is growing in Asia, over 43% of global caprolactam production capacity is based in western and eastern Europe, which has only 24% of nylon capacity.

Caprolactam dust can irritate the eyes, lungs and skin. It is a slight fire hazard.

ICIS pricing quotes caprolactam in Europe and Asia-Pacific and China.

Frequency:

All reports published weekly on Wednesdays.

Caprolactam (EUROPE)

Weekly Price Assessments:

Caprolactam Contract Prices

• FD monthly (EUR/MT)

Caprolactam (ASIA-PACIFIC)

Weekly Price Assessments:

Caprolactam Contract Prices

• CFR N.E.ASIA (USD/MT & conversion to US CTS/LB)

Caprolactam Spot Prices

• CFR N.E.ASIA (USD/MT & conversion to US CTS/LB)
• CFR China (USD/MT & conversion to US CTS/LB)
• CFR Taiwan (USD/MT & conversion to US CTS/LB)

Caprolactam (CHINA)

Weekly Price Assessments:

Caprolactam Contract Prices

• CFR CHINA MAIN PORT (USD/MT)
• CFR TAIWAN (USD/MT)

Caprolactam Spot Prices

• CFR CHINA MAIN PORT (USD/MT)
• EAST CHINA EXWH (CNY/MT)

General Information:

Assessment window: Caprolactam assessments are based on information supplied by market participants through the week up to close of business on Wednesday at 18:00 hours in London, Singapore and 17:00 hours in China.

Specification: In Europe, assessments are based on product with a maximum water content of 100 ppm. In Asia and China, the quotes are for molten product or flakes.

Timing: In Asia and China, ICIS pricing tracks cargoes loading up to four weeks from the date of publication. In Europe, loading within the current month.

Terms: In Asia and China, payment terms average LC at-sight to 90 days into most ports. In the Chinese domestic market, payment is usually made in cash or bank draft valid for up to 180 days.

Standard cargo size: In Europe, flakes can be sold in lots from one metric tonne. Liquid material is transported in full truck loads of 26-29 tonnes. Generally, 40 foot containers (load 23 tonnes) are used for transportation overseas. In Asia and China, typical cargo size for imports and exports is 500-1,000 tonnes.

Assessment Basis: Caprolactam price assessments are based on reported business and bids-offers heard throughout the week. In Europe, the FD NWE (free delivered Northwest Europe) quote reflects contract prices settled on a monthly basis between buyers and sellers in the market. The European report text quotes spot prices into China on a weekly basis. This refers to material traded from Eastern Europe into Asian markets. When assessing prices into China, levels are quoted as USD/tonne CFR China Main Port (CMP).

In Asia, contract prices assessments cover prime grade material. These quotes encompass monthly CFR prices that are retroactively settled between producers and buyers in Korea and Taiwan. Trades into Southeast Asia are not included in the quotes but are discussed in the text.

The Asia CFR quotes cover trades for mainly Russian, Eastern European, South American and Indian product into China, Taiwan and Korea. Top grade product normally commands a USD50-100/tonne premium, but the gap between the grades shrinks when supply tightens.

In China, contract price assessments cover prime grade material. These quotes encompass monthly CFR prices that are retroactively settled between producers and buyers in China and Taiwan.

The Contract China CFR and Taiwan CFR quotes cover trades for mainly Japanese, Korean, American, Spanish, Thai and Dutch product into China and Taiwan. The payment terms are LC 90 days in China and LC at-sight in Taiwan.

The Spot China CFR quotes cover trades for mainly Russian, Eastern European, South American and Indian products into China. The payment terms are LC 90 days.

East China EXWH prices refer to local trades mainly in Shanghai, Ningbo and Nanjing dealt in Chinese yuan (CNY). Prices at the upper end of the range usually represent deals of about 50 tonnes while those at the lower end of about 100-200 tonnes.

Following the price ranges, each report carries a market commentary which includes information on contract discussions and nominations, details on spot transactions, supply/demand balance, general sentiment for price direction, production information when applicable and a general market overview of the week. Caprolactam feedstocks are covered with benzene quarterly contract and spot prices mentioned weekly, while the prices of ammonia and cyclohexane are mentioned from time to time.

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