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Caprolactam producers in euphoric mood

17
Sep '09
Caprolactam manufacturers in India are in a euphoric mood. After having witnessed low prices in the last quarter and first two months of 2008 and 2009, respectively, prices of caprolactam have once again rebounded since February.

Caprolactam is colour-less solid, which is a lactam or a cyclic amide of caproic acid and is produced by the Beckmann rearrangement. From a low of Rs 70,000 per ton in February, prices have zoomed to Rs 116,000 per ton now.

At the same time, prices of its feedstock; benzene has slipped from Rs 58,950 per ton, a year ago to Rs 39,902 per ton as of date. This has resulted in higher margins for the producers, who were operating on low or nil margins a few months back.

There are only two companies producing caprolactam in India. Gujarat State Fertilizers Corporation (GSFC) has a capacity of 70,000 tons per annum and Fertilisers & Chemicals Travancore (FACT); 50,000 tons per year and between them they account for 3 percent of the world production.

Caprolactam is the feedstock for producing Nylon 6, which in turn is used as a raw material for manufacture of Nylon Filament Yarn, Nylon Tyre Cord Fabric and also in brush bristles, textile stiffeners, synthetic leather and cross-linking for polyurethane.

Fibre2fashion News Desk - India


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