In the latter half of March 2025, the global caprolactam market continued to face pressure with prices remaining stable at low levels in major markets. Ample inventory levels, muted demand from downstream sectors and falling feedstock prices provided a tough situation for Caprolactam producers, as buyers adopted conservative buying tactics.

In China, caprolactam prices initially saw a weakening trend before reaching tentative stability towards the end of the month. The downward pressure was largely led by decreasing costs of major feedstocks like benzene and cyclohexanone, which lowered the cost of production for Caprolactam but were unable to trigger buying interest. The downstream automotive and textile market procured material on need basis only, holding back restocking of inventories.  Participants in the market reported poor trading volumes, with sellers decreasing their offers to attract buyers in a market.

Germany's market followed a similar trajectory, with prices steadying at the lower end as the months' close. While natural gas prices displayed marginal increases, this was balanced by falling benzene and cyclohexanone prices, maintaining production economics positive. Additionally, resolution of early month production issues further bolstered supply levels.  However, Caprolactam demand in major industrial applications was soft, held back by overall economic uncertainty and high financing costs. The automotive market, one of the largest end-users, gave no indication of any meaningful recovery, keeping pressure on caprolactam use. With ample material in hand and no supply dearth, buyers lacked motivation to pursue aggressive buying.

The U.S. market followed international trends, with prices sliding back slightly after a short-lived mid-month stabilization. Lower benzene prices brought some comfort to producers, though insufficient demand from nylon fibre and engineering plastic manufacturers restricted any potential gain. The auto industry's continued cautious stance towards purchasing amid trade tension-maintained prices in check alongside. Additionally on a broader economic front, market sentiment remains suppressed due to subdued Consumer confidence resulting from increasing inflation, recession fears, and policy uncertainty worries over economic growth. This cautious market approach restricted any recovery in caprolactam prices, reinforcing the prevailing bearish sentiment.

According to ChemAnalyst, market players anticipate prevailing conditions to continue in the near term. In China, pressures of oversupply may keep prices down if demand from downstream sector remains lacklustre. In Germany, intense competition from Asian imports emphasizes the need of strong industrial growth to stimulate recovery in Caprolactam demand. Stable supplies in the U.S. meanwhile are set to keep prices low, although changes in the economic environment may turn trends around.