Updated to mid-November 2009
Asian market review by Bohan Loh, ICIS pricing
Asian caprolactam prices fell from a peak of $2,200-2,230/tonne CFR (cost and freight) NE Asia (northeast Asia) in mid-August to around $1,860-1,900/tonne CFR NE Asia by early-October. Prices then rebounded in tandem with key feedstock benzene to $2,040-2,060/tonne CFR NE Asia by the week starting 9 November.
European market review by Julia Meehan, ICIS pricing
During the period mid-August to October the value of caprolactam dipped €85/tonne despite weaker benzene. A tight to balanced supply situation, healthy demand locally and from Asia for flakes material resulted in some margin recovery for European producers.
The August caprolactam contract was agreed at €1,799-1,855/tonne FD (free delivered) NWE (northwest Europe), up €100/tonne on the back of benzene which firmed in August by €168/tonne.
September contract discussions were ongoing and a price was not agreed until the first week of October when caprolactam settled at €1,749-1,805/tonne FD NWE, down €50/tonne, despite benzene dropping by €71/tonne.
October saw another drop in benzene and subsequently caprolactam which was agreed at €1,714-1,770/tonne FD NWE. The contract prices quoted are pre-discounted and can incorporate up to a 15% discount.
In November, benzene increased by €42/tonne. Most market sources expected to see the November caprolactam contract price increase by €21/tonne.
Demand during the three month period picked up largely as a result of strong demand for flaked material from the Asian markets. European demand also improved not only for engineering plastics, but also for fibres and textiles. The carpeting sector was still under a lot of pressure but even in this sector market sources said that business had picked up compared to previous quarters.
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Caprolactam
Uses and Outlook
The growth in caprolactam is very dependent on the nylon 6 business which has suffered from poor profitability. Around 70% of the caprolactam is used in making nylon 6 fibres, which are made into textile, carpet and industrial yarns. This market is mature and been in decline in the western world at the expense of growth in Asia. The nylon 6 fibres sector also sees competition from other materials such as nylon 6,6 and polyester. As a result, this sector is only expected to grow at 1%/year.
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Caprolactam
Process Technologies
Conventional caprolactam technology is based on the key intermediate cyclohexanone, which is usually produced by the oxidation of cyclohexane, but can also be made from phenol or toluene. Separately, hydroxylamine sulphate is manufactured by the oxidation of ammonia to nitrous oxide followed by hydrogenation in the presence of sulphuric acid. The hydroxylamine sulphate is then reacted with the cyclohexanone to produce cyclohexanone oxime. This is followed by a Beckmann rearrangement using oleum to yield caprolactam.
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