Early March Europe capro contracts up €150/tonne

LONDON (ICIS)–Players in the European caprolactam (capro) market have agreed some early March contracts €150/tonne higher versus February on the back of good demand and limited availability, sources said on Wednesday.

A producer said this increase was slightly lower from what was anticipated but still a good level.

The capro market appears to be short and customers keep asking for additional material bringing demand to a higher level year on year, other players added.

Sources on the buy side said that even if they are discussing increases of around €100/tonne, the main target is to push for less.

One of them said a settlement €50/tonne more would be desirable and it will try to avoid another three-digit increase.

Volumes in the carpet and garments industries have been affected by the significant increases of the past two months, it added.

Meanwhile, producers in the downstream nylon 6 market are targeting increases of around €200/tonne, which some capro sources found very ambitious, even if the market is short.

During an industry event taking place this week, some players said the market outlook is positive but there is concern about the high prices.

Business has been healthy for the past three months but the latest constant increases could be a bubble about to burst, a buyer said.

The European capro February contract price was assessed at €2,119-2,191/tonne FD (free delivered) NWE (northwest Europe).

Pictured above: red carpet on the stairs of Berlin’s Konzerthaus. Carpets and garments are a key end market for capro
Source: Juice/REX/Shutterstock