Caprolactam Prices Rise as Raw Materials Strengthen

Price trend

The average domestic liquid caprolactam market price was RMB 13,966 per tonne on May 9 and RMB 14,233 per tonne on May 16. Caprolactam prices rose by 1.91%.

Analysis of the market situation

Caprolactam cost pressure increased as raw materials strengthened and prices rose again. Under the support of cost, most caprolactam enterprises raised their prices. Downstream PA enterprises are mainly purchasing on demand, and the demand follow up is still acceptable. The market trend of caprolactam market is stable in the upward operation. As of May 16, Sinopec caprolactam liquid price 15,000 CNY/ton, 6 months on delivery. Baring Heng Yi caprolactam liquid price of 15,000 CNY/ton, factory capacity of 450,000 tons / year, 6 months on delivery. Baling Petrochemical Caprolactam liquid price 15,000 CNY/ton, factory capacity 300,000 tons / year, 6 months cash on delivery. Shandong Hualu Hengsheng caprolactam bulk water price of RMB14,700/mt, cash on delivery to East China, factory plant capacity of 300,000 tons/year. Shandong Luxi Chemical caprolactam liquid price 14000 CNY/ton, factory capacity 300,000 tons.

Raw material pure benzene price fell first and then rose. In the first half of the week, due to the plunge of crude oil, the centre of gravity of pure benzene market softened. Shandong region was hit by low-priced hydrogenated benzene, and the prices fell continuously as the enterprises took general delivery. In the second half of the week, with the rebound of crude oil and the wide rise of pure benzene in Asia, the cost side supported by strong, pure benzene centre of gravity followed the rebound. Due to the decline in Sinopec production, as well as East China port inventory continued to move lower to about 97,000 tons, pure benzene supply is expected to be tight, the main refinery prices rose. Shandong region was supported to rise, but the increase was limited.

Post-market forecast

Raw material prices continue to rise as the current raw material prices are high and firm. The cost side is under pressure and caprolactam companies are mainly selling at a higher price. The demand side just needs to buy, and the downstream follow up is limited. It is expected that the price of caprolactam will rise in the short term due to the strong trend of raw materials.