Early May Europe caprolactam contract targets emerge

07 May 2014 17:53 Source:ICIS News

LONDON (ICIS)--European caprolactam (capro) buyers are aiming to limit May contract price rises to around half of the €29/tonne rise in the feedstock cyclohexane (CX) May contract price, arguing that downstream nylon 6 demand and margins are too weak to pass-on the full benzene cost in May, they said on Thursday.

Although underlying nylon 6 buying interest remains firm, higher availability from Eastern Europe on the back of lower Asian consumption is limiting European capro offtake.

Producers are targeting a minimum of the full CX cost pass-through, citing tight supply resulting from a heavy maintenance schedule in the second quarter.

By Mark Victory