Asian caprolactam was assessed at a 17-month low Thursday, with CFR Fareast Asia and CFR Southeast Asia down $220/mt on the week at $1,670/mt and $1,650/mt, respectively. The price weakness was attributed to thin demand from the downstream nylon sector amid falling feedstock costs.
CFR Fareast Asia caprolactam was last assessed lower on July 6, 2017, at $1,590/mt, while CFR Southeast Asia was last assessed lower on July 13, 2017, at $1,610/mt. Market sources said that demand from the downstream nylon sector was weak amid narrowing production margins, with prices expected to continue on a downtrend over the month of December.
However, buyers said that there was hope for a Lunar New Year "miracle", during which prices may pick up.
Feedstock benzene prices are also hovering at two-year lows, as growing supply from the Southeast Asian region adds more length to the Asian market.
Benchmark FOB Korea benzene was assessed at $636.33/mt Thursday, down $55/mt on the month, and down $271.67/mt on the year.
