Output of Caprolactam falls sharply in November

01 Jan '09

1 min read

2008 began with a sharp rise in crude oil prices resulting in an increase in prices of its derivatives like petrochemicals etc. During the first few months of the year, a downtrend in consumption of petrochemicals was also witnessed leading to major petrochemical plants announcing part closures of different products.

But since the unfolding of the economic crisis in the third quarter of 2007, the slowdown has increased to levels never seen before as consumer spending dropped leading to a fall in demand from downstream industries. Output of major petrochemical raw materials like ethylene and caprolactam was affected the most.

China which is one of the world's largest petrochemical manufacturer and consumer, witnessed output of caprolactam falling by 55 percent in November when compared with the same period of 2007, according to a news letter of the state owned refining and petrochemical major Sinopec Corp.

The company has citied a slowdown in demand from downstream Nylon chips manufacturing capacities in China and Taiwan which has created a situation of oversupply in the previous months leading to cut in production of the key feedstock material of nylon chips.

Fibre2fashion News Desk - India

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