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China's dependence on CPL imports to end

17
May '12
China's dependence on caprolactam (CPL) imports is likely to end within the next two years, although the country is currently dependent for more than half of its domestic CPL requirement on imports.

Owing to its complex production process, there are only a few CPL manufacturers in China. These include Zhejiang Juhua Group, DSM Nanjing, Baling Petrochemical, and Sinopec Shijiazhuang Chemical Fiber. However, this situation is projected to change within the next two years.

China had 925,000 tons/year of CPL capacity under construction at the end of 2011, as per the official data. As these new plants gradually become operational this year and in 2013, Chinese domestic CPL production will complete import substitution.

In 2012 itself, China would add 525,000 tons per year of new CPL production capacity, which would be nearly equal to China's production capacity that existed at the end of 2011.

China is expected to achieve demand-supply parity by the end of 2013, after which the profitability of the CPL industry will witness slow erosion unless CPL demand rises in domestic market.

Fibre2fashion News Desk - China


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