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Chinese CPL producers laugh all the way to the bank
Dec '11
China's caprolactam (CPL) sector managed to realize considerable profit margins from the beginning of the year to September. CPL price increased from 24,000 Yuan/ ton to 32,000 Yuan / ton from January to April and stayed in the range of 30,000 Yuan / ton in June to July.

Compared to polyester, nylon-6 polymer and its fibers have better toughness and wear resistance. Nylon-6 is gradually replacing metals and plastics in the automotive industry. However, operating rate of nylon-6 plants has been only 60-70 percent this year, due to lack of raw material supply.

In the first nine months, CPL producers garnered considerable profits from their operations, especially the two time periods from March to April and from June to July. Their profit per ton was over 10,000 Yuan in those periods. Although caprolactam price has now dropped to about 24,000 Yuan / ton, CPL producers still have decent profit margins.

Of the global new CPL capacities being set up, nearly 80 percent of global new production capacity will be concentrated in China next year. Of the new Chinese CPL capacity being created in 2012, 400,000 tons will be operational in first quarter and 200,000 tons in third quarter. 300,000 tons is expected to be added in 2013.

Moreover, recently, some listed companies, such as Luxi Chemical, China Chemical and Lanhua Sci-Tech Venture Co Ltd have announced new caprolactam projects with 200,000 tons of capacity, each.

Fibre2fashion News Desk - China

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