The Caprolactam prices show an upward trend persistently in the European market due to high natural gas prices and operating costs. The high demand from the downstream Polyamide 6 in the European region also increased the Caprolactam price. 

In Q3 2022, DOMO chemicals declared force majeure on Caprolactam products due to high natural gas and operating costs across Europe. Europe has been suffering with natural gas supply after Russia cut off its supplies in late August as an outcome of the Russia-Ukraine war conflicts.

Furthermore, the European supply chain has been disrupted due to the region's port congestions and cargo bunching. The Europe port congestion still has not eased, amidst another strike announced in the UK's port, Liverpool, from 11th October to 17th October 2022 for seven days. This strike will affect inland transportation as well as global trading activities. The source said Germany's inflation rate has recorded to rose 10% in September 2022 versus September 2021. Germany's inflation rate is mainly owing to the soaring energy prices caused by crude oil and natural gas shortages. It is the highest rate ever recorded in the country.

Caprolactam is used to produce Polyamide 6 in the industry as a feedstock. The downstream automotive parts, synthetic fibers, pharmaceuticals, and a significant portion of engineering plastic enterprises had observed moderate demand in the European market.

As per the Analyst, the cost of Caprolactam hovered around USD 3370/MT on a FOB Hamburg basis with a weekly appreciation of 1.2% during the week ending 07th October 2022.

According to ChemAnalyst, the Caprolactam price is expected to rise in the German market due to demand from the downstream polyamide industry. The uncertainty in natural gas prices will also contribute to the price movement of Caprolactam. The port congestions and strikes in UK ports will impact the supply chain and delay the materials' delivery to their destination.