Caprolactam Prices, Pricing, Demand & Supply
North America
Caprolactam pricing in North America in Q4 2023 witnessed to a declining pattern due to the feeble trading activities among enterprises. The oversupply of Caprolactam in the market led to a decline in demand, primarily due to reduced buying activities and high-interest rates. This resulted in a bearish market situation with low demand and moderate supply.
The lackluster demand for Caprolactam can be attributed to the economic uncertainty and customers continuing to reduce stock levels. The decline in prices was influenced by supply and demand imbalances and fluctuations in raw material prices, primarily benzene.
In the USA, the prices of raw material benzene remained weak which influenced the downstream derivative sectors, including Caprolactam. The year-end offer sales could lead to destocking of materials, but improved buying activities are expected in the domestic market. Overall, the Q4 2023 Caprolactam market in North America faced bearish conditions with moderate supply, low demand, and oversupply.
APAC
The Caprolactam Prices in the APAC region during Q4 2023 was characterized by low demand and ample supply, which can be attributed to several factors such as reduced production levels, subdued customer demand, and abundant supply prevalent in the market. The reduction in the price of the raw material, pure benzene, played a significant role in this decline, weakening overall cost support. Concurrently, downstream demand experienced a decrease, leading to a more cautious approach to procurement. The Caprolactam production unit exhibited a gradual recovery with an increase in supply. In December, the decline in new foreign sales showed signs of moderation, with new export business contracting at a marginal rate, marking the slowest pace in six months. The supportive factors contributing to the performance of Caprolactam were the weakening conditions in downstream industries, particularly in the textile and electrical sectors. These industries, which form a crucial part of the market, experienced a softening, influencing the overall dynamics of Caprolactam sales in the international market. Overall product demand is not robust, and inquiries from the overseas market are subdued as the year ends.
Europe
The Caprolactam market in Europe witnessed a bearish trend in Q4 of 2023, with subdued demand and moderate supply being the top factors affecting the market. The lackluster demand for the product was primarily due to the abundant supply prevalent in the market, leading to a cautious procurement approach by downstream industries. High-cost pressure from the import cargo from the overseas market also impacted the market. In Germany, the consistent narrow price range observed for Caprolactam was a result of subdued demand reflected in low orders received from the domestic market. The continued decline in new orders from the domestic market during October further contributed to a reduction in purchasing activity within the German market. The downstream industries, specifically mentioning Polyamide 6, appeared to be cautious in their procurement approach, only making purchases on a need basis. This lack of proactive buying from downstream industries indicates a more conservative and reserved stance, possibly influenced by market conditions or strategic considerations.
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MEA
Caprolactam experienced a bearish market in the current quarter of 2023 for the MEA region. The moderate supply and reduced buying activities led to a decline in demand for the product. The stable to weak pattern in the global prices of the raw material benzene also influenced the declining trend observed in the market. The United Arab Emirates witnessed a decline in demand due to reduced buying activities, and the affordability of imported cargo from the Asian market played a significant role in keeping Caprolactam prices in the UAE market low. The combination of sufficient supply, stable inventory levels, and cost-effectiveness from Asian sources contributed to the steadiness in the price of Caprolactam during this period, even amid an overall positive trajectory in the non-oil economy. In December, merchants and buyers in the market adopted a cautious approach, primarily purchasing Caprolactam as needed, without committing to significant stockpiles. Additionally, the decrease in domestic inquiries further contributed to the subdued demand, particularly at the end of fourth quarter.
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