From the end of the year to the end of the year, market participants predicted that the tight supply of caprolactam in 2010 may continue into next year, and prices will continue to be firm. The price in the Chinese market reached a record of 2,850 to 2,880 U.S. dollars per ton (CFR, China) on December 22, and the price of caprolactam in January 2011 is expected to remain at more than 2,800 U.S. dollars per ton.
Asia’s contract price in December also reached a record price of US$2,800/tonne (CFR, Northeast Asia), which soared by 28% from January. It is expected that the supply will remain tight in 2011 and the profits of the manufacturers will further increase. Manufacturers estimate that in 2011, global caprolactam demand will increase by 8% to 4.32 million tons, of which Asia's demand accounts for more than 58%. According to industry insiders, the Asian automobile industry is developing at a high speed and the demand for caprolactam is very high. In particular, the demand for the tire cord market is continuously increasing.
In terms of supply, there are only two capacity expansion projects in 2011. Japan’s Ube’s 110,000 t/y caprolactam plant in Rayong, Thailand will expand capacity by 20,000 tons/year, and Kaohsiung, Taiwan, will achieve a capacity expansion of 20,000 tons in the first quarter by de-bottlenecking. The total production capacity will reach 200,000 tons/year. It is expected that these companies will add 40,000 tons of caprolactam to the market, most of which may be digested on the spot. And there will be a large amount of new nylon capacity to be put into operation next year, which will increase the demand for caprolactam.
Asia’s contract price in December also reached a record price of US$2,800/tonne (CFR, Northeast Asia), which soared by 28% from January. It is expected that the supply will remain tight in 2011 and the profits of the manufacturers will further increase. Manufacturers estimate that in 2011, global caprolactam demand will increase by 8% to 4.32 million tons, of which Asia's demand accounts for more than 58%. According to industry insiders, the Asian automobile industry is developing at a high speed and the demand for caprolactam is very high. In particular, the demand for the tire cord market is continuously increasing.
In terms of supply, there are only two capacity expansion projects in 2011. Japan’s Ube’s 110,000 t/y caprolactam plant in Rayong, Thailand will expand capacity by 20,000 tons/year, and Kaohsiung, Taiwan, will achieve a capacity expansion of 20,000 tons in the first quarter by de-bottlenecking. The total production capacity will reach 200,000 tons/year. It is expected that these companies will add 40,000 tons of caprolactam to the market, most of which may be digested on the spot. And there will be a large amount of new nylon capacity to be put into operation next year, which will increase the demand for caprolactam.