Chemical Industry news of Asian CPL
– No notable pickup in demand ahead of May 1
– Supply to remain tight amid turnarounds
Trading in the Asian caprolactam Chemical Industry was thin over the week to Friday sources said. This was in contrary to previous years when there is typically a pick-up in demand ahead of the May 1 holidays, they added. The China market will be closed for most of next week for the May 1 holidays, sources said. Buyers were taking a wait-and-see approach, opting to procure material after the holidays with prices seen staying rangebound through April. A Chemical Industry participant said that buying was more “cautious and conservative” this year. Supply was expected to tighten moving forward, amid turnarounds at major producers in Taiwan and China. Sumitomo Chemical’s April contract price for caprolactam was concluded at $1,790/mt CFR, up to $20/mt from March. In the downstream nylon Chemical Industry, demand for nylon chips seen at $2,050-$2,060/mt CFR Far East Asia. Inventory levels were also higher in the week.
Asia caprolactam was assessed unchanged on the week. CFR Fareast Asia was assessed at $1,750/mt CFR Fareast Asia, based on tradable indications heard at the level, and below offers at $1,790/mt. CFR Southeast Asia was assessed at $1,725/mt, keeping the CFR Fareast Asia-CFR Southeast Asia Chemical Industry spread unchanged on the week.