Asian caprolactam prices are expected to rise after the October 1-10 holidays in China and Taiwan as firm demand amid supply shortages due to maintenance in the region, buyers said.
Taiwan's China Petrochemical Development Corp. shut its 200,000 mt/year caprolactam plant in Hsiaokang, Kaohsiung, Thursday for 10-14 days of annual maintenance.
A production line at Japan's Ube Industries' 90,000 mt/year caprolactam plant in Ube, Yamaguchi prefecture, has been shut since mid-September for 45 days of annual maintenance.
South Korea's Capro Corporation was expected to shut its 270,000 mt/year plant in Ulsan for annual maintenance in mid-October, a market source said though this could not be confirmed.
"This is the peak season for nylon production and most plants in China and Taiwan are running at 80%, so there is a lot of demand for caprolactam, but with all the plants on maintenance at the same time, supply is tightening and prices are rising," a second source said.
Asia caprolactam was assessed at $1,900/mt CFR Far East Asia on October 5, the last time prices stood at this level was on April 20, S&P Global Platts data showed.
