Prices of Caprolactam decreased in China but were stable in the United States for the week ended 21 November 2025, as divergent supply adjustments, inventory positions, and sector-specific demand dynamics shaped market sentiment across both regions.
Caprolactam prices softened in China during the week in review as market fundamentals continued to reflect a supply-heavy landscape despite ongoing production cuts.
On the production side, feedstock cyclohexanone costs rose during the week, but producers were largely shielded from the immediate cost increase due to their dependence on inventories of the feedstock procured at earlier, lower prices.
In October, the Caprolactam industry started taking remedial action by lowering operating rates and starting maintenance shutdowns following months of stock accumulation and a continuous supply-demand surplus. These actions caused the balance to shift into negative territory, resulting in the first significant inventory drop. As producers continue to exercise strict output restriction, more losses are anticipated.
Demand, however, failed to render seasonal support. The traditional peak season for textiles did not emerge strongly, with nylon filament offtake remaining modest and transactions largely driven by rigid demand. A cautious downstream approach for Caprolactam is reinforced by the fact that filament factories continue to maintain relatively substantial stocks, averaging about 43 days, which restricts restocking appetite.
In contrast, balanced market fundamentals drove a steady trend in Caprolactam prices during the same period in the United States. Production economics remain predictable driven by steady to softer feedstock cyclohexanone prices, and a favourable macroenvironment was maintained by the expansion of the U.S. manufacturing sector.
However, there were mixed signs for Caprolactam demand from important downstream industries. As vehicle inventory levels increased to 2.96 million units, or 85 days of supply, the automotive industry, a significant user of technical plastics made from caprolactam, softened. Automakers were forced to reduce production plans and postpone raw material acquisitions due to high stock levels.
Countering this, the textiles segment acts as a counterbalance; holiday-season sales boosted clothing demand by 1.42% month-on-month and almost 8% year-on-year, which sustained stable nylon fibre demand and consequently Caprolactam consumption.
Looking ahead, China's Caprolactam market is expected to gradually stabilize with continuing inventory drawdowns and producers on reduced operating rates, although demand recovery will heavily depend on nylon filament offtake and a rebound in textile activity. In the US Caprolactam prices are likely to remain stable as potential improvement in textile industry ahead of upcoming holiday seasons is expected to be countered by still-lingering automotive inventory overhang. Overall, both markets are well-placed for cautious, supply-managed stability rather than pronounced price swings heading into late Q4 2025.
