For the Quarter Ending December 2024
North America
The North American Caprolactam market witnessed a marginal decline of 1% in Q4 2024 compared to the previous quarter, reflecting subdued demand and ongoing supply chain challenges. The quarter opened with weak activity from downstream sectors, particularly automotive and textiles. Reduced benzene feedstock costs further pressured caprolactam prices as suppliers focused on maintaining volumes. Hurricane-related disruptions, including Hurricane Helene’s impact on textile manufacturers and Hurricane Milton’s approach, compounded logistical challenges, dampening market stability.
Midway through the quarter, the market faced extended delivery times and inventory buildup due to freight constraints and reduced new orders. The cautious sentiment was further influenced by political uncertainty following President Trump's re-election, which contributed to muted procurement activity. Despite these challenges, manufacturers remained focused on clearing backlogs, ensuring supply adequacy.
Towards the end of the quarter, while there was some improvement in demand from downstream sectors, particularly automotive, and concerns over potential tariffs under the new administration prompted some proactive procurement, these factors were not enough to fully offset the earlier downward trend. The quarter-ending price for Caprolactam DEL Houston stood at USD 1879/MT, marking the highest point of the quarter.
APAC
The Caprolactam market in the APAC region faced a challenging Q4 2024, marked by declining prices driven by weak demand and persistent oversupply. Early in the quarter, steady production and improved operating conditions supported sufficient supply levels. However, logistical disruptions caused by Typhoon Kong-rey, which impacted Asia-Europe shipping routes, introduced temporary delays in supply chains without significantly affecting market dynamics. As the quarter progressed, year-end destocking efforts by manufacturers and sluggish demand from key downstream sectors, such as automotive and textiles, hampered price recovery. The textile industry grappled with poor order follow-up and low demand, resulting in mounting inventories and aggressive discounting strategies that added downward pressure on prices. Toward the quarter’s close, ample supply continued to outweigh limited demand, exacerbating the oversupply situation. Weak performance in upstream feedstocks, including benzene, further reduced input costs, enabling price cuts. Seasonal factors, such as the year-end lull and cautious pre-holiday procurement ahead of the Chinese New Year, compounded the subdued demand. The quarter-ending price for Caprolactam FOB Shanghai in China stood at USD 1460/MT, reflecting the sustained negative trend. Oversupply, tepid demand, and cautious market sentiment are expected to keep the market under pressure in the near term.
Europe
The European Caprolactam market remained under pressure throughout Q4 2024, with persistent price declines driven by subdued demand from downstream industries and market challenges. The European automotive industry, in particular, faced intensified competition from Chinese electric vehicle manufacturers and declining domestic sales, reducing the demand for caprolactam in automotive components. The textile industry also saw decreased consumption as consumers shifted towards sustainable practices and cut back on non-essential spending, further weakening market dynamics. Supply levels were stable throughout the quarter, supported by robust inventories from previous periods and steady production rates. However, declining feedstock costs, particularly for benzene, combined with weak market conditions, placed significant downward pressure on Caprolactam prices. Mid-quarter saw slight relief in logistics costs due to declining freight rates, though upcoming regulatory changes like the expansion of the EU Emissions Trading System (ETS) are expected to increase operational costs for shipping. By the quarter's end, the price for Caprolactam FOB Hamburg in Germany stood at USD 1855/MT, reflecting a consistent decline throughout Q4. Seasonal low demand, inventory management, and limited recovery in downstream industries compounded the sluggish market sentiment.
MEA
In Q4 2024, the MEA Caprolactam market, particularly in the UAE, experienced a significant declining trend, with prices falling by 14% compared to Q3. This downturn was primarily driven by weak downstream demand, downward price pressure from Asian exporters, and destocking activities. Early in the quarter, declining demand from downstream industries in the UAE, mirroring similar trends in exporting countries like China, led manufacturers to offer discounted prices, impacting the UAE market. Geopolitical tensions and port congestion globally created hesitance in procurement. Weak cargo demand, exacerbated by Typhoon Bebinca and Golden Week holidays in China, contributed to weaker freight rates, further supporting lower prices. Logistical challenges from Typhoon Kong-rey and previous storms caused shipping delays in key export regions, though this did not translate into upward price pressure due to weak demand. By the end of Q4, Caprolactam prices in the UAE were down due to abundant supply and a lack of significant downstream demand. The quarter-ending price for Caprolactam CFR Jebel Ali was recorded at USD 1592/MT, reflecting the broader market trend of weakening prices.
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.
