For the Quarter Ending September 2024
North America
The third quarter of 2024 has witnessed a significant uptrend in Caprolactam pricing across North America, with the USA experiencing the most notable price changes compared to the previous quarter. This increase can be attributed to several key factors. The current demand of caprolactam in the downstream industries is low driven by fluctuations in the automobile industry and a decline in textile industry. However, recent hurricanes have resulted in significant supply chain disruption, leading to tighter supply conditions, further driving up prices.
In the USA specifically, the correlation between price changes and seasonality has been evident, with prices showing an approximately 5% increase from the previous quarter. Despite the increase in price, Industries faced challenges from hurricanes, which disrupted the supply chain, while weak orders from the overseas market also contributed to price volatility. The port of Brownsville near the Mexico border and other smaller terminals in Texas were closed, while major ports such as Houston, Galveston, Corpus Christi, Texas City, and Freeport operated with restrictions.
As of the end of the quarter, Caprolactam prices reached USD 1895/MT, FOB Texas. This figure highlights the ongoing impact of both localized disruptions and broader market dynamics on pricing trends in the Caprolactam sector.
APAC
In Q3 2024, the APAC region experienced a steady decline in Caprolactam prices, primarily due to weak orders from downstream sectors like textiles and automotive industries. Seasonal factors and reduced consumer spending contributed to lower demand, resulting in subdued buying activity. China, in particular, faced significant price fluctuations, influenced by oversupply, diminished demand, and falling prices of raw materials such as pure benzene. The global textile industry is increasingly moving away from synthetic fibres amid rising environmental concerns, which has further exacerbated the oversupply situation. This shift reflects a broader negative sentiment in the market. During Q3 2024, Caprolactam prices in the region dropped sharply by 6.14% from the previous quarter, underscoring the continuous downward trend. By the end of the quarter, prices in China had fallen to 1765/MT, FOB Shanghai, highlighting the challenging pricing environment affecting the region. The combination of weak demand, shifting industry practices, and oversupply has created a challenging landscape for Caprolactam pricing in the APAC market.
Europe
In Q3 2024, Caprolactam prices in the European region experienced a significant decline, primarily driven by weak demand from downstream industries. Key factors contributing to this downward trend include a slowdown in the automotive and textile sectors, reduced manufacturing activity, and sluggish new orders. The automotive industry is facing major challenges, such as a decline in new registrations and intensified competition from Chinese electric vehicle manufacturers, which has diminished the need for Caprolactam in automotive components. Additionally, the market is grappling with increased shipping costs, logistical disruptions, and uncertainties in deliveries. The German textile industry, in particular, is experiencing decreased demand as consumers shift toward more sustainable practices, negatively impacting Caprolactam sales. By the end of the quarter, the price for Caprolactam at FOB Hamburg in Germany reached USD 2148/MT, reflecting the prevailing negative sentiment in the pricing environment. Overall, Q3 2024 was characterized by a negative pricing trend, with subdued demand and challenging supply dynamics significantly impacting market stability across the region.
MEA
Throughout Q3 2024, the Caprolactam market in the MEA region experienced a notable decline in prices due to several significant factors. An oversupply of Caprolactam from overseas markets weakened demand, leading to reduced pricing across the region. Additionally, consistently low orders from downstream sectors, particularly in the textile and automotive industries, further applied downward pressure on prices. A stable supply chain and ample availability of raw materials also contributed to the negative pricing trend. Moreover, the absence of cost pressure from feedstock Benzene in the Asian market played a crucial role in this decline. In the United Arab Emirates, the market recorded the most significant price changes during the quarter, with a negative percentage change of 9.5 % from the previous quarter. By the end of Q3 2024, the price for Caprolactam at CFR Jebel Ali in the UAE reached USD 1,880/MT, underscoring the prevailing negative sentiment in the pricing environment. Overall, the quarter was characterized by a sustained decline, reflecting broader market challenges.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Caprolactam market experienced a stable to moderate trend despite a weak downstream demand, particularly from the textile and automotive sectors. Amid high inventory levels and cautious procurement practices, manufacturers faced diminished orders, resulting in persistent price reductions. The global textile market's lackluster performance, exacerbated by geopolitical tensions and elevated interest rates, further dampened Caprolactam demand. Constrained logistics, including limited vessel space and heightened freight charges, curtailed overseas demand, adding to price pressures.
Focusing on the USA, which exhibited the most substantial price shifts, the market showed clear signs of declining sentiment. Seasonal impacts and subdued consumption trends marked Q2, correlating directly with Caprolactam's price trajectory. Compared to the same quarter last year, prices plunged by 22%, reflecting a sharp market contraction. Despite a marginal 2% uptick from the previous quarter, likely due to temporary restocking or speculative buying, the overall quarter depicted a negative pricing environment. The transition from the first to the second half of Q2 saw a 1% price reduction, underscoring the persistent downward pressure.
APAC
The second quarter of 2024 has been marked by a significant downward trend in Caprolactam prices across the APAC Region. This decline is primarily attributable to persistently weak demand from downstream industries, including the textile and automotive sectors, coupled with ample supply and stable feedstock benzene prices. Furthermore, geopolitical tensions and subdued export activities have exacerbated the sluggish market conditions.
In South Korea, where the price changes have been most pronounced, the overall trend has been notably bearish. The market dynamics have been heavily influenced by seasonality factors, such as lower purchasing activity during the holiday periods and a cautious approach from downstream industries in replenishing inventories. The percentage change from the same quarter last year recorded a sharp decline of 12%, highlighting the weakened state of demand. Additionally, there was a modest 1% decrease from the previous quarter of 2024, further emphasizing the continued pressure on prices.
Comparing the first and second halves of the quarter, there was a marked difference of -5%, indicating a consistent downward trajectory. The quarter concluded with the price of Caprolactam standing at USD 2099/MT FOB Busan. Overall, the pricing environment has been distinctly negative, reflecting the ongoing challenges faced by the industry in combating oversupply and diminished demand.
Europe
The second quarter of 2024 has witnessed stable pricing for Caprolactam across the European region. This stability in the market can be primarily attributed to a delicate balance between supply and demand. Despite moderate operational capacities and sufficient inventory levels, the demand from downstream sectors, particularly textiles and automotive, remained tepid. High-interest rates and geopolitical tensions have cultivated a cautious purchasing behaviour, resulting in subdued market activity. The persistent hesitancy among consumers and businesses has effectively hampered any significant price fluctuations for Caprolactam during this period.
Focusing on Germany, the market has experienced the most notable price changes within Europe. The overall trend for Caprolactam in Germany reflects a consistent stabilization, despite the sector's struggle with weak demand and accumulated stock. Seasonality impacts were minimal, as the market saw no significant deviation between the first and second half of the quarter. The price comparison within Q2 remained flat at 0%, reinforcing the stable sentiment prevalent in the region. Europe is experiencing lacklustre demand for the product, particularly in the construction and automotive sectors. As a result, traders maintained their prices.
Analyzing the year-over-year comparison, Caprolactam prices have decreased by 22% from the same quarter last year, underscoring a significant contraction. However, when compared to the previous quarter in 2024, there was a 10% increase, indicating some recovery momentum. Despite these variances, the pricing environment in Germany has predominantly been stable, influenced by a strategic balance of supply and prudent inventory management.
MEA
The second quarter of 2024 witnessed a notable decline in Caprolactam (CPL) prices across the MEA region, prominently driven by subdued demand from downstream industries, particularly the textile sector. A sluggish global economic environment, compounded by logistical disruptions and fluctuating raw material costs, dampened the purchasing activity. The market dynamics were influenced by cautious restocking behaviors as enterprises opted to minimize inventory levels amidst uncertain demand patterns. The consistent supply of CPL, coupled with moderate overseas pricing, added to the downward pressure on market prices.
The market saw an overall -8% decline from the same quarter last year, reflecting a weakened purchasing sentiment and tepid demand from key sectors. Comparing to the previous quarter in 2024, prices adjusted downward by 2%, showcasing continued market instability. Seasonality played a role, with the first half of the quarter noting a steeper -5% price reduction compared to the latter half, indicative of a gradual accumulation of oversupply.
The price of Caprolactam in the UAE concluded the quarter at USD 2090/MT CFR Jebel Ali. This decremental trend underscored a negative pricing environment, heavily influenced by ample product availability and moderate demand. Companies remained hesitant to increase their CPL inventories due to the weak performance of the textile and automotive sectors, leading to a stable yet subdued market outlook. Overall, the second quarter was marked by a consistent decline, with the CPL market facing adverse conditions and no immediate signs of recovery.
For the Quarter Ending March 2024
North America
The Caprolactam pricing in the North American region during Q1 of 2024 continued to be influenced by various factors impacting the market. The supply chains were still being impacted, leading to volatility in prices. Fluctuations in raw material prices also contributed to the unstable market conditions. Furthermore, the sluggish demand from downstream sectors persisted, further adding to the pricing volatility. The United States remained the most affected country, experiencing significant changes in prices.
During Q1 of 2024, the trend and seasonality of Caprolactam prices in the USA remained stable, supported by moderate supply. However, there was a slight increase in prices compared to the second half of the previous quarter, indicating an expected improvement in new orders. The year-on-year comparison of prices remained stable with no significant changes.
It is worth mentioning that there were plant shutdowns reported in January 2024 due to freezing weather conditions. One notable shutdown was observed at the BASF SE plant in Freeport, Texas. The plant was closed on January 13, 2024, and resumed operations on January 26, 2024. This temporary shutdown had a short-term impact on the Caprolactam supply in the region.
The latest price of Caprolactam DEL Houston in the USA during Q1 of 2024 remained at USD 1702/MT. Overall, the dynamics of the supply chain, fluctuations in raw material prices, and demand from downstream sectors continued to play a crucial role in shaping the Caprolactam pricing in North America during Q1 of 2024.
APAC
During the first quarter of 2024, the price of Caprolactam (CPL) exhibited a mixed trend in the APAC region. While China and Korea experienced price increases, India followed the opposite trend. The rise in the cost of feedstock Benzene in the APAC region had a significant influence on the overall CPL market. Further, the spring holidays in China have led to increased costs in the Chinese market, with manufacturers responding to this by adjusting their pricing structures. The most recent survey by the International Textile Machinery Federation (ITMF) in March 2024 indicates a textile industry landscape characterized by cautious optimism amid ongoing hurdles. While there was a modest improvement in the business climate from November 2023 to January 2024, the situation overall remained challenging by March 2024, highlighting the enduring struggles companies encounter throughout the textile value chain. The predominant issue continues to be weak demand, casting a shadow over marginal enhancements in order intake and capacity utilization rates.
Europe
During the first quarter of 2024, the European market witnessed contrasting trends in Caprolactam prices. Caprolactam prices remained steady throughout the initial two months. However, despite price stability, demand for Caprolactam was lackluster in Europe during this period. This subdued demand was primarily attributed to the abundant availability of Caprolactam in the market, leading to a decline in fresh orders. As the quarter progressed, there was a notable upsurge in prices, primarily driven by the preceding month's increase in Benzene prices. Moreover, ongoing disruptions in ocean routes adversely impacted the supply of feedstock materials, exacerbating the situation. Consequently, this supply chain disruption reverberated throughout downstream derivative markets, contributing to price fluctuations. In response to these market dynamics, manufacturers adjusted their pricing strategies by increasing quotes. This strategic move aimed to bolster profit margins after a prolonged period of constrained price ranges. By the end of the quarter, the price of Caprolactam FD Hamburg in Germany had surged to USD 2410/MT, reflecting the culmination of these market forces.
MEA
During the entirety of the first quarter of 2024, the price of Caprolactam experienced a notable increase, primarily driven by escalating prices in exporting countries, which consequently impacted the UAE market. Despite this upward trend, demand for Caprolactam in downstream sectors remained relatively moderate. The higher prices of feedstock Benzene in Q1 further compounded the challenges faced by downstream sectors. However, beyond the impact of increased costs, the market also grappled with multiple disruptions, which exerted additional upward pressure on prices. Business capacity was notably affected by disruptions to input freight arrivals, stemming from the Red Sea shipping crisis. These disruptions not only created pricing challenges but also caused significant delays in delivery times. Companies reported experiencing the poorest supplier performance in a year, exacerbating the already complex market conditions. The latest price of Caprolactam CFR Jebel Ali in the UAE market for the first quarter of 2024 was USD 2170/MT. This reflects the overall price increase in the region due to the disruptions and strong demand observed during this period.
For the Quarter Ending December 2023
North America
Caprolactam pricing in North America in Q4 2023 witnessed to a declining pattern due to the feeble trading activities among enterprises. The oversupply of Caprolactam in the market led to a decline in demand, primarily due to reduced buying activities and high-interest rates. This resulted in a bearish market situation with low demand and moderate supply.
The lackluster demand for Caprolactam can be attributed to the economic uncertainty and customers continuing to reduce stock levels. The decline in prices was influenced by supply and demand imbalances and fluctuations in raw material prices, primarily benzene.
In the USA, the prices of raw material benzene remained weak which influenced the downstream derivative sectors, including Caprolactam. The year-end offer sales could lead to destocking of materials, but improved buying activities are expected in the domestic market. Overall, the Q4 2023 Caprolactam market in North America faced bearish conditions with moderate supply, low demand, and oversupply.
APAC
The Caprolactam market in the APAC region during Q4 2023 was characterized by low demand and ample supply, which can be attributed to several factors such as reduced production levels, subdued customer demand, and abundant supply prevalent in the market. The reduction in the price of the raw material, pure benzene, played a significant role in this decline, weakening overall cost support. Concurrently, downstream demand experienced a decrease, leading to a more cautious approach to procurement. The Caprolactam production unit exhibited a gradual recovery with an increase in supply. In December, the decline in new foreign sales showed signs of moderation, with new export business contracting at a marginal rate, marking the slowest pace in six months. The supportive factors contributing to the performance of Caprolactam were the weakening conditions in downstream industries, particularly in the textile and electrical sectors. These industries, which form a crucial part of the market, experienced a softening, influencing the overall dynamics of Caprolactam sales in the international market. Overall product demand is not robust, and inquiries from the overseas market are subdued as the year ends.
Europe
The Caprolactam market in Europe witnessed a bearish trend in Q4 of 2023, with subdued demand and moderate supply being the top factors affecting the market. The lackluster demand for the product was primarily due to the abundant supply prevalent in the market, leading to a cautious procurement approach by downstream industries. High-cost pressure from the import cargo from the overseas market also impacted the market. In Germany, the consistent narrow price range observed for Caprolactam was a result of subdued demand reflected in low orders received from the domestic market. The continued decline in new orders from the domestic market during October further contributed to a reduction in purchasing activity within the German market. The downstream industries, specifically mentioning Polyamide 6, appeared to be cautious in their procurement approach, only making purchases on a need basis. This lack of proactive buying from downstream industries indicates a more conservative and reserved stance, possibly influenced by market conditions or strategic considerations.
MEA
Caprolactam experienced a bearish market in the current quarter of 2023 for the MEA region. The moderate supply and reduced buying activities led to a decline in demand for the product. The stable to weak pattern in the global prices of the raw material benzene also influenced the declining trend observed in the market. The United Arab Emirates witnessed a decline in demand due to reduced buying activities, and the affordability of imported cargo from the Asian market played a significant role in keeping Caprolactam prices in the UAE market low. The combination of sufficient supply, stable inventory levels, and cost-effectiveness from Asian sources contributed to the steadiness in the price of Caprolactam during this period, even amid an overall positive trajectory in the non-oil economy. In December, merchants and buyers in the market adopted a cautious approach, primarily purchasing Caprolactam as needed, without committing to significant stockpiles. Additionally, the decrease in domestic inquiries further contributed to the subdued demand, particularly at the end of fourth quarter.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, Caprolactam prices in the US remained stable, with slight improvements. The stability and marginal upturn in prices can be attributed to several market dynamics. In July 2023, the raw material Benzene experienced a 9.5% decrease in price due to oversupply, which subsequently contributed to the cost-effectiveness of Caprolactam production. However, despite this favorable condition, new orders from merchants followed a declining trend. Backlogs remained stable in July, despite challenging credit conditions and high-interest rates within the country. One notable positive aspect was the significant improvement in supplier delivery times, reaching a record high in the US market. In the middle of the third quarter, there was a marginal price improvement for Caprolactam, influenced by rising fuel, raw material, and labor costs in the US market. However, the demand for the product continued to be subdued. The decline in new orders was primarily attributed to a weakening economy and cautious customer behavior when entering into new contracts. These factors combined to shape the landscape of Caprolactam prices in the US during the third quarter of 2023.
Asia
The Caprolactam market in Korea and across the Asia-Pacific (APAC) region experienced a fluctuating price trend in the third quarter of 2023. In July, prices showed a declining trend, but they later rose in the third quarter. The rise in the third quarter was influenced by the strength of the raw material Benzene, which led to an increase in the production cost of Caprolactam in Asian regions. However, despite the cost dynamics, the demand for Caprolactam in industries like auto parts, textiles, and electronics remained subdued. This was primarily due to a lack of interest from potential customers and the sufficient availability of Caprolactam in the regional market. South Korea's early exports saw a continued decline in August, reflecting the ongoing impact of lackluster global trade on economic growth. Additionally, a survey conducted by the Central Bank of Korea revealed a decline in consumer sentiment in August, marking the first instance of weakening in six months. Towards the end of the quarter, the crude oil and benzene markets significantly influenced downstream derivative industries, including Caprolactam. This pricing dynamic highlights the intricate relationship between raw material costs and pricing trends within the Caprolactam industry.
Europe
In the third quarter of 2023, the price of Caprolactam in the European region followed a declining pattern, primarily attributed to low demand from downstream industries. The business conditions in Germany, a key player in the European market, deteriorated during this period. This decline was characterized by a faster decrease in both business activity and new orders. Several factors contributed to this challenging environment, including rising interest rates, customer uncertainty, and broader inflationary pressures. This overall economic outlook indicated a bearish demand for Caprolactam in the German market. The German manufacturing purchases index consistently remained below threshold limits throughout the quarter, further underscoring the uncertainty in domestic economic activity. New export orders also saw a notable decline, particularly due to reduced sales across Europe. These factors collectively contributed to the declining pattern of Caprolactam prices in the European region during the third quarter. Finally, the latest prices of Caprolactam FOB Hamburg in Germany (Europe) at the quarter ending was USD 2518/MT.
Middle East
The pricing of Caprolactam within the UAE market displayed variability throughout the third quarter of 2023, primarily in response to the competitive pricing strategies adopted by overseas markets. During the month of July, the UAE market saw the arrival of cost-effective materials sourced from abroad, a result of reduced cost pressures related to the raw material, Benzene, originating from exporting nations. Despite this, the demand for the product remained at an average level in the UAE market, even as prices exhibited an upward trend. Notably, during the middle of the quarter, the cost of Caprolactam increased, largely driven by elevated raw material prices from exporting nations in the Asian market. This rise in costs can be partly attributed to the influence of high international crude oil prices on the production expenses of Benzene within the Asian market. Additionally, Benzene manufacturers in the Asian opted to maintain higher prices, coinciding with improvements seen in other sectors of the domestic market. Towards the end of the quarter, prices began to decline as a result of cost-effective imports from Asian markets, driven by reduced raw material expenses.
For the Quarter Ending June 2023
North America
The price of Caprolactam witnessed a declining pattern throughout the second quarter of 2023 due to the weak cost pressure from the feedstock Benzene and low demand from the downstream textile industry in the US market. The new orders from the merchants remained a declining trend as the backlogs remained stable in June despite tight credit conditions and high-interest rates in the country. The supplier’s delivery times improved further and to the greatest extent on record in the US market. Companies were destocking the material in order to maintain the inventories at the minimum level amidst dwindling prices. Although easing from that seen in May, the pace of contraction in new export orders was steep overall in June. Some firms also noted that sufficient stock levels at clients had led to lower new orders. Overseas sales had dropped notably, and the domestic market remained deteriorated throughout the second quarter of 2023. The buyers were cautious and wait-and-see approach, engaging only a need-based purchases.
APAC
In the second quarter of 2023, the price of Caprolactam remained in a bearish pattern due to poor performance from the downstream Nylon 6 production industry. The demand for the product did not improve and the market had enough material to cater to the downstream requirements. Further, the raw material benzene remained weaker in the Asian market supported by the downstream derivative industries, including the Caprolactam market. The market has also been negatively impacted by several other macroeconomic issues since mid-May, including the US bank crisis, the bond crisis, the pressure from the RMB's devaluation, geopolitical tensions, the economy's slow recovery, deflation, the falling PMI, and more. Prices can only decrease as a result of any unfavorable change in the global economy rattling the nerves of savvy domestic merchants. There was a weakening domestic economy and export expectations due to the uncertain global demand and ongoing trade frictions with the US. China's manufacturing activity contracted for a third straight month in June, albeit at a slower pace.
Europe
The price of Caprolactam witnessed a declining pattern throughout the second quarter of 2023 due to the weak cost pressure from the feedstock Benzene and low demand from the downstream textile industry in the German market. The month saw a dramatic decline in new orders for manufacturers in the largest economy in the Eurozone, driven primarily by falling export sales. Destocking of Caprolactam by customers, low market confidence, and a slowing economy all hampered the flow of new business. Weakness continued to be concentrated in the manufacturing industry, where orders fell due to uncertainty and inventory depletion. In June, the business conditions across Germany took a turn for the worse with faster declines in both activity and new orders amid a backdrop of rising interest rates, customer uncertainty, and wider inflationary pressures, indicating the demand for Caprolactam in the textile industry remained bearish in the market. Supply chains in the textile industry were relieved of pressure as a result of lower demand for the product. High energy prices significantly contributed to the increase the inflation rates in June, which dampened the demand for the product.
For the Quarter Ending March 2023
North America
The cost of Caprolactam witnessed a gradual decline trend during the first quarter of 2023 due to weak demand from the downstream industries. The natural gas prices in the US market significantly decreased, leading to the price drop in the derivative industries, including Caprolactam. The production rate remained stable, and the production cost slumped due to lower natural gas prices in the market. In March 2023, the annual inflation rate in the US decreased for nine straight months, which relieved many American consumers and provided some support for the US Federal Reserve's initiative to raise interest rates and support the economy to grow. The amount of small-business optimism in the US decreased in March 2023, and new orders from the polyamide6 sector were also reduced.
APAC
The price of Caprolactam witnessed a stable downward trend in Asia-Pacific throughout the first quarter of 2023 due to the weak demand from the downstream textile industry. Growth momentum became more substantial in March 2023 compared to the same last year. Chinese businesses have seen a significant increase in sales revenue in the first quarter of 2023. On the other hand, in India, Caprolactam prices declined throughout the quarter of 2023. Cheap imports from other Asian countries that had lower prices pushed the product's cost in a downward direction, and consistent vendor performance appeared to indicate that supplier capacity was sufficient to fulfill the downstream demand.
Europe
During the first quarter of 2023, the Caprolactam market has observed to decline trend in the European region. Since the fourth quarter of 2022, there has been less demand from the downstream industry. Due to lower consumer sentiment, end-use industry orders decreased in January and continued in February. With some market negotiating, the downstream Polyamide6 observed a narrow price range and decreased demand for Caprolactam. The European Central Bank (ECB) made a significant rate increase of 50 basis points, demonstrating its willingness to provide banks with liquidity in the face of recent banking sector turmoil. When interest rates rise, demand usually falls, which can cause the global textile industry to suffer.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the price of Caprolactam went up for the first two months, then fell in North America. Despite the feedstock price decreases, the cost of Caprolactam is inclined to trend due to the limited availability and continuous orders from the downstream industries. According to the players in the market, the majority of the purchases were based on demand. In December, the cost of Caprolactam was lowered as a result of the abundant supply that existed on the domestic market. The holiday approached in the last month of Q4, further decreasing demand and orders from buyers. In addition, domestic consumers had a wait-and-buy attitude in the face of inflation.
APAC
During the fourth quarter of 2022, the price of Caprolactam decreased in Asia. The interest from the downstream business was a low and high stockpile of the product in the market, declining the expense of Caprolactam. Additionally, the price of upstream Benzene and feedstock Cyclohexanone decreased in Asia, supporting the costs of the downstream industries. The downstream Nylon industry remained sluggish, and the market moved down. Additionally, the inventory of Caprolactam in the regional market was high, and the operating rate of Nylon 6 textile filament has consistently decreased in some Chinese plants. At the same time, in India, the consistent stockpile from traders and surplus availability declined the expense of the product. As the year came to a close, the market saw a decrease in orders from end-use industries.
Europe
The price of Caprolactam in Europe increased for the first two months but declined during the final month of the fourth quarter of 2022. The supply chain has been disrupted due to the region's port congestions and cargo bunching. In addition, the high energy prices in the European market resulted from the high operational cost of producing the product. In December, the demand from the downstream industry was weak, and the consumers were reluctant to buy the product due to imminent recession and inflation in the region. As a result of low demand, the manufacturers have reduced the production rate of Caprolactam in the region. Further, the upstream Benzene prices dropped and supported the downstream derivative industries in the Eurozone.
For the Quarter Ending September 2022
North America
The North American market for Caprolactam saw mixed sentiments throughout quarter 3 of 2022. In the first month of Q3, the price inclined, owing to the high demand from the downstream textile and automotive industries. While the second month of Q3, prices suddenly decreased due to poor demand from the polyamide 6 markets, and buying sentiments across the region were dull. The inventories were observed to be raised, and the traders and suppliers stockpiled more products. The last month of Q3 followed an upward trajectory due to the manufacturers' supply shortage. In the USA, some ports were congested, and vessel dwell time was increased and delayed in delivering the materials to their destination.
APAC
The price of Caprolactam saw mixed sentiments throughout the third Quarter of 2022 in the Asian region. In China, in the first two months of Q3, Caprolactam prices decreased sharply due to the upstream Benzene price fall in the Asian market, and feedstock Cyclohexanone prices also decreased in the Chinese market. At the same time, last month of Q3, the Caprolactam price increased slightly due to high demand from the downstream Polyamide6 and automotive industries in the Chinese market. In India, the Caprolactam price gradually decreased due to high inventory from exporting countries like China. The adequate supply of the product constrained the price hike in the Indian domestic market.
Europe
Caprolactam prices saw mixed sentiments in the European region during the third Quarter of 2022. Europe's rise in energy prices created an unprecedented scenario with high uncertainty and limited visibility. DOMO chemicals have declared force majeure on Caprolactam production in central Germany due to the region's increased energy and operational costs. The upstream benzene price also contributes to the downstream derivative price movement. In the last month of Q3, the prices inclined due to tight supply from the manufacturers. Several ports were congested, and deliveries were delayed; inland transportation in Germany was disturbed. As the Rhine River's water level fell, imports and exports impeded in the region. On the other hand, the high demand from the downstream polyamide 6 markets has raised the price of Caprolactam.
For the Quarter Ending June 2022
North America
Caprolactam market saw a rise in the prices in the North American region during the second quarter of 2022, with costs ranging from USD 2440/ton-USD 2608/ton Caprolactam FOB Texas with a quarterly escalation of 6.3%, as per recorded by Chem Analyst pricing team data. The market saw fewer inventories and lower stockpiling of the product with the traders and suppliers. The shortage of truck drivers restricted the export and import of the product within the region, leading to a need for products. US transport and supply chains were affected past Covid. The country suffered from a lack of additional logistics space to help relieve some of this pressure. These all factors, in turn, uplifted the prices, putting pressure on the costs of the product.
Asia
Caprolactam prices surged in the Asian region, with prices hovering around INR 227375/ton Caprolactam Ex-Mumbai in India during May with a quarterly escalation of 9.7%, as per recorded by Chem Analyst pricing data. In Asia, European inquiries about Caprolactam are increasing as buyers try to replace lost supplies from Russia. The prices of upstream feedstock Benzene, Sulphur, and Ammonia fluctuated due to escalating demand from these regions in the varying sector and the ongoing war between Russia and Ukraine, which affected the petroleum market. Extreme volatility and instability affect all petrochemical products, and nylon chain products are no exception. Nylon six chains were accustomed to the volatility of Benzene. Still, rising costs of other raw materials needed to produce caprolactam and energy costs disrupted negotiation plans for the second quarter of 2022.
Europe
The European prices for Caprolactam surged during Q2 of 2022, with prices hovering around 3,235/ton Caprolactam FOB Hamburg with a quarterly escalation of 3.3% in Germany as recorded by chem Analyst pricing team data. Escalation in the product prices in exporting countries like Belgium, Poland, and other EU nations put cost pressure on the region. The surge in the downstream demand for Nylon-6 and other textiles supported the upward trend of the product. Fluctuating freight charges globally due to the ongoing war between Russia and Ukraine was also one of the primary reasons for the prices to rise.
For the Quarter Ending March 2022
North America
Prices of Caprolactam dropped continuously in the North American market throughout the 1st quarter of 2022. However, feed Cyclohexanone prices were stable in the North American market. High-cost pressure from upstream industries towards the end of the quarter caused increased values of Caprolactam. The demand from the downstream textile industry remained sluggish during the winter season, which negatively impacted the prices, and values of Caprolactam in the US market. The Caprolactam prices on FOB basis at Texas USA are recorded at USD 2020/MT by the end of March. The average decrease was 12% from the last quarter of 2021.
Asia Pacific
Prices fluctuated throughout Q1 in the Asian market. Caprolactam prices in China were assessed at USD 2222/tonne by the end of March 2022, with an average decrease of 6% from the last quarter of 2021. Prices of Caprolactam rose initially in the Chinese market due to an increase in feed Benzene prices but dropped in mid-quarter because of sluggish feedstock value and weak demand in the region. Finally, prices became stagnant after increase in crude oil values in March 2022. On the other hand, in the Indian market, demand from the textile industry was less in the 1st month of Q1 but became firm after mid-quarter. Caprolactam prices were accessed at USD 2467/MT by the end of Q1, showcasing an increase by 10% from the last quarter of 2021.
Europe
Prices of Caprolactam rose continuously throughout the first quarter in the European region. The values increased by 10% from the last quarter of 2021 in the European market. Though the prices of Cyclohexanone were stable, the production cost got impacted by higher energy values in the winter months across Europe, which affected the production rates of Caprolactam. The downstream textile and electronic industry registered stable demand throughout Q1 of 2022. Caprolactam prices were accessed at USD 3030/MT on FOB basis in March 2022.
For the Quarter Ending December 2021
North America
Caprolactam market in North American region traced a conventional demand-supply pattern in Q4 of 2021 where demand deteriorated throughout the quarter in lieu of the winter holiday season. Consequently, prices declined from USD 2490 per MT in October to USD 2320 per MT in December on FOB basis. Imports from Asia-pacific (APAC) region also waned from the beginning of the quarter till the end of Q4. Freight rates have observed some rationalization in Q4, however the freight rates from Asia to America remained strong which constrained APAC exports of Caprolactam to North American region.
APAC
In India, Caprolactam market have seesawed throughout the quarter where prices fluctuated during the three months of the quarter. Festive season brought optimism across Indian textile market coupled with recently introduced Production Linked Incentive (PLI) scheme for textile sector by Indian government. The bullish market sentiment was vindicated by increase in prices from October to November. However, market lost its steam towards the H2 of the quarter stemming from decline in demand due to traditional dip as well as emergence of another Covid variant as CFR prices declined to INR 158450 per MT in December. China market also observed similar fluctuations where market gained in H1 of the quarter however market normalized in the last month of the quarter and stabilized at USD per MT.
Europe
Rising feedstock cost and stable demand of Caprolactam resulted in gradual increase in the prices of the available material. Ammonia and benzene prices remained robust throughout the quarter owing to increase in demand and decline in production in previous months. Climbing natural gas and brent crude prices further pressured the overall cost of production and thereby impacting the final price of Caprolactam. Caprolactam prices have increased to USD 2795 per MT in December 2021 on FOB basis. Supply also remained snug throughout the quarter as falling Rhine water levels hampered barge traffic and load capacity. Consequently, operators increased barge freight costs.
For the Quarter Ending September 2021
North America
The prices of Caprolactam rose effectively during the third quarter of 2021 in the North American region. Surging raw material prices in the wake of tight inventory levels, as well as skyrocketing feedstock prices, have culminated into the reduced production levels across the region in Q3. Supply of Caprolactam has been tight during the quarter mirroring the trend of previous quarters. A hike in demand from downstream Polyamide was observed during the quarter as key sectors of development including textiles and engineering resins kept consumption numbers strong. The prices of Caprolactam were assessed around 2640-2810 per MT on FOB basis in Q3 2021.
Asia Pacific
During the third quarter of 2021, Caprolactam prices witnessed a significant rise in the Asia Pacific region backed by the increased prices of feedstock. The pricing trend traced upwards in the Chinese domestic market. In India, the prices of Caprolactam improved in the first half of Q3 under the influence of improved offtakes from the domestic market, while facing higher import charges due to soaring freight costs. Ex-Mumbai price of Caprolactam rose from USD 2205/mt to USD 2362/mt during the quarter. However, FACT announced that they will resume their caprolactam production unit again after a long gap of 7 years in the country. This restart is expected to improve the availability of Caprolactam in the country and reduce the dependency on other countries including China.
Europe
The prices of Caprolactam ramped up during Q3 due to the increased demand from textiles and engineering resins industry in the wake of economic recovery in European countries. Stagnant demand growth in automotive sector had been underwhelming for market prospects of Caprolactam as consumption volumes from the sector remained underwhelming following the trend of previous quarters. Offtakes by the Nylon chip industries were stable in Q3 2021. In Germany, FD Hamburg prices of Caprolactam experienced an uptrend by escalating from USD 2298 to USD 2400 per MT during the quarter.
For the Quarter Ending June 2021
North America
Caprolactam supplies in the North American region improved during Q2 2021, as the Gulf coast industrial infrastructure recovered from the Impact of winter storm Uri and several manufacturing units ramped up the production rates. Despite that, several buyers were observed replenishing their raw material inventories ahead of the hurricane season. Global hike in the Benzene prices amidst raised inflation rate supported the upward trend in the US Caprolactam market. However, prices stabilized in the final month of the quarter with FOB Texas offers settling at USD 2470 per tonne by the end of the second quarter.
Asia Pacific
Overall, the Asian Caprolactam prices observed an uptrend since the start of the quarter, owing to abrupt inflation in the prices of the key feedstock Benzene which pushed up the pricing trend of derivative Caprolactam throughout the region. Demand from the downstream Nylon Chip producers plunged which further curtailed the offtakes of Caprolactam while the spot market in China observed strong wait and see sentiments among the buyers. Caprolactam supplies in the region were ample to easily manage the enquiries from the downstream textile and automotive industries. Pricing trend in the Chinese market traversed upwards trajectory since mid-of Q1 and observed a growth of 10.65% with FOB Ningbo settlements assessing at USD 2315 per tonne by the ending of second quarter.
Europe
Caprolactam Supplies in the European region were balanced at the starting of the quarter, however due to the consistent offtakes and global inflation in the feedstock Benzene curtailed the production margins. Demand outlook was positive in the European region with majority of enquiries coming from the automotive sector. Offtakes by the Nylon chip industries improved as downstream industries recovered from the impact of the pandemic. Imports from the USA increased but at a slower pace as domestic players focussed on replenishment of their inventories.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, supplies were constrained as several major plants declared force majeure, due to the extreme freeze weather conditions in the US gulf region led the shortage in upstream Benzene supplies. Due to the shutdown in the Gulf region the FOB Texas price surged by + USD 265/ton to USD 1950/ton. The demand is healthy as the consumption from the downstream automotive, construction and textile sector. Flaring Benzene rates further pushed up USA offers to unprecedented highs. The supply-demand widened gap surged the prices of CFR New York in March to USD 2250/ton.
Asia-Pacific
The supplies in the Asia-Pacific region were tight, as several Capro production plants were shut, followed by decline in imports from Europe. The domestic supplies also remained short due to the Chinese Lunar New Year holidays starting mid-February. However, the demand remained firm from the downstream sectors, still there is constant consumption from the Nylon Yarns and chips. Low benzene inventory levels followed by firming upstream crude surged the spot prices of Caprolactam in the APAC market. Tight supplies from Russia pushed up the regional Caprolactam offers with prices touching USD 1444/ton in March.
Europe
Caprolactam supplies were balanced to tight, in the European region during Q1 2021, as LANXESS plant with the caprolactam production capacity of 220 KTPA was on a force majeure and restarted the production in the second half of the first quarter. The demand surged as consumption from the downstream food and packaging, electronics, textiles continued to be steady. Due to the less consumption from the automotive sector, buyers remained opportunistic to restock their inventories. The prices in Germany were raised by USD 510/ton taking the quarterly average to USD 2250/ton.
For the Quarter Ending September 2020
North America
The Caprolactam supply in the region remained disturbed caused by disruptions in the producer’s plant operations in second and the third quarter as a combined of COVID-19 disruptions and outages caused by Hurricane Laura. Tightened supply and a sharp increase in demand for Nylon 6 fibers across the US and other regions to produce carpets, seat belts, ropes etc. kept the offers raised beyond expectations. Regional prices have shown an uptrend due to rise in the raw material Benzene which is tracing strong gains in the crude futures since the start August.
Asia
The Caprolactam supply in various Asian countries, majorly northeast Asia have declined in Q3 due to plant shutdowns and reduced run rates maintained to balance out the inventory levels. Producers were heard operating their manufacturing plants at curtailed rates, at around 75% in economies such as China & Taiwan. Also due to the reduction in demand from the downstream nylon markets-the major demand driving segment for Caprolactam, there was a consistent pressure over the profit margins of various Capro producers. Additionally, lesser international trade was observed following weaker demand in the region pressuring prices across the Indian subcontinent to around USD 1180 per tonne in September.
Europe
Demand for Caprolactam across the European countries revived in Q3 with better offtakes heard across the Nylon 6 consuming sectors compared to Q2. Sentiments took a leap with surge in DIY activities as people spent more on home renovations amid lockdown restrictions. Also, the market regained momentum buoyed by the sharp pick-up in the automotive industry with the demand still longing to reach to pre-COVID levels.
