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CPL offers to strengthen in 2011
30
Dec '10
Strong offers for overseas caprolactam almost remain to be a foregone conclusion in the beginning of next year. Gradually declining inventory levels of downstream factories and sporadic demand from speculative traders make holders, reluctant sellers in expectation of bullish market.

The market looks difficult to fall back, being driven by speculative demand in the short term.

Currently downstream sections are benefited from the rise of upstream raw materials as prices have rebounded from low levels. Upstream and downstream are expected to encourage each other.

Therefore, domestic and overseas offers of caprolactam might remain strong in the beginning of the next year and there is also a possibility that the market may slightly rise.

Experts aver that, buyers should pay more attention to the changes in operation rate of downstream polymerization factories and purchase intention of spinning enterprises.

On December 28, factory price of CPL from Baling Petrochemical was 23500 Yuan per ton; market price in East China was 23700-23900 Yuan per ton, from Shijiazhuang Chemical was 23500 Yuan per ton and market price in North China was 23700-23900 Yuan per ton.

Fibre2fashion News Desk - China


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