China Caprolactam Prices Show Signs of Recovery After Sluggish Start in January
- 25-Jan-2022 2:02 PM
- Journalist: Nina Jiang
Caprolactam market started the year on a weaker note in China where prices fall for the initial couple of weeks. However, Caprolactam prices have recovered slightly during the third week of January on the back of firm feedstock Benzene values and improved buying sentiment before February holidays.
Caprolactam prices have gained 1.78% during mid-January assessments due to rising cost pressure from upstream benzene prices and revival in demand ahead of spring season holidays. Benzene prices have improved in last couple of weeks strengthening from skyrocketing crude oil prices around the world. Consolidating on the market sentiment, Sinopec has increased the prices of pure Benzene last week. Consequently, Caprolactam manufacturers in China have increased their quotations in order to keep the margins.
Demand of Caprolactam has recovered from downstream industries as Caprolactam forms upstream for several key industries. Engineering Resins and Films, Industrial Yarns, and Textiles and Carpets are among several industries that rely heavily on Polyamides which are downstream of Caprolactam.
As per ChemAnalyst, “Several market participants have remarked that stocking activities ahead of Lunar New Year holidays have concluded and market can expect stability in terms of demand from downstream industries in coming months. This is likely to weaken the market sentiment further and may result in another price for caprolactam decline towards H2 of the first quarter.”