The China Caprolactam market in August 2025 started on a soft platform, with falling prices due to oversupply and poor demand. The producers have been running steady operating rates, supported by stable raw materials supplies, where benzene values have been generally stable before slipping and cyclohexanone dropped, lowering the production cost. This cost reduction, instead of increasing margins, contributed to sellers' failure to maintain higher prices. By the end of the month's last week, the decline slowed, and market sentiment stabilized but without a strong impetus for recovery.
Key Takeaways
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Chinese Caprolactam prices declined in early August before firming towards the end of the month.
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Caprolactam supply stayed ample as producers sustained operating rates and raw materials remained available.
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Upstream costs softened, with cyclohexanone weakening and benzene edging lower by late month.
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Automotive demand fell, with July passenger vehicle sales down xx.xx and NEV sales plunging xx.xx.
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Exports offered little relief as Southeast Asia and India reduced imports.
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Weak downstream procurement anchored a subdued trading environment for Caprolactam.
Supply Saturation Shapes Market Tone
Abundant availability dominated supply dynamics of Caprolactam throughout the month. Domestic production ran smoothly, capitalizing on steady supplies of benzene and milder cyclohexanone to keep output going. Logistics issues—wrought in the form of delayed shipments or feedstock interruption—appeared for a brief period but were too minor to alter overall balance, as producers counted on inventories to buffer operations.
