Caprolactum prices surged significantly in Asian markets due to tight spot supplies and firm demand in China market. Although benzene prices have been declining, their fall was offset by the hike in ammonia and sulfur values. Many producers expect spot caprolactum prices would go up to US$2,500 a ton in the short run. With Japan\'s Ube Industries shutting its Sakai unit for maintenance from 20 March up to April-end availability in Japan will reduce somewhat.

Germany - FM for caprolactam and PA resin from Leuna [ 26 Feb, 2010]

Domo Caproleuna (Leuna / Germany) has declared force majeure on PA products from Leuna, due to problems originating with a workers’ strike at Total Petrochemicals (Paris La Défense / Frankreich; www.total.com). A Domo spokeswoman told PIE that deliveries to the company’s PA customers have had to be reduced by around 30%, as propylene supply from Total’s cracker at Leuna cracker is also affected.

The FM applies to the entire PA production chain at the site, from caprolactam to the virgin resin used to produce manmade fibres as and engineering thermoplastics. As PIE went to press, an end to the strike appeared near.

Source: Plastics Information Europe

Ube Industries Offers US$2,300/ton for Caprolactam exports to Korea and Taiwan [ 06 Jan, 2010]

Ube Industries, Ltd. disclosed that the January contract price for exporting caprolactam to leading companies in Korea and Taiwan is US$2,300 per ton. As a result of the rise in benzene costs, the price is US$120 higher than December 2009.

According to the company, its clients are running their nylon plants at extremely high operation rates. A number of nylon producers in China, Korea and Taiwan are planning to increase their capacities by 238,000 tons by March. Especially, demands for tire-cord applications are vigorous, and caprolactam is expected to be in tighter supply in Asia.

Source: Asian Textile