Caprolactam Price Trend and Forecast

Caprolactam Regional Price Overview

Get the latest insights on price movement and trend analysis of Caprolactam in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Caprolactam Price Trend for the Q4 of 2024

Asia

In Asia, Caprolactam prices followed a predominantly bearish trend throughout Q4’24. The market was pressured by weak demand from the textile sector, particularly in China where delayed seasonal purchases and high inventory levels forced producers to offer discounts.
 

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While the automotive sector showed some recovery early in the quarter, it wasn't sufficient to offset the overall demand weakness. Feedstock benzene prices remained volatile but generally trended downward, providing limited cost support to Caprolactam producers. Production rates remained stable, but manufacturers struggled with inventory management amid sluggish order flows.

Europe

European Caprolactam markets experienced a mixed trend during Q4’24. The quarter began with sharp price declines due to weak demand from both automotive and textile sectors, particularly in Germany where manufacturing activity contracted. However, mid-quarter saw a slight recovery driven by rising feedstock benzene costs. The EV sector's growth provided some support, but overall automotive demand remained subdued. Textile industry demand was particularly weak during the holiday season, as consumer spending remained cautious amid economic uncertainties. Plant operating rates were adjusted downward to manage growing inventory levels.

North America

North American Caprolactam market showed relative stability compared to other regions in Q4’24. While the market faced similar demand challenges from downstream sectors, better inventory management and controlled production rates helped maintain price levels. Feedstock benzene price fluctuations impacted production costs, but producers managed to pass through some of these increases. The automotive sector provided steady demand, though textile industry consumption remained below expectations. Regional logistics improvements helped maintain consistent supply chains.

Analyst Insight

According to Procurement Resource, the Caprolactam market is expected to see potential recovery in early 2025, driven by post-holiday restocking activities and possible improvements in textile sector demand.
 

Caprolactam Price Trend For the Q3 of 2024

Asia

The Asian domestic market experienced significant downward pressure throughout the said quarter, characterized by persistent oversupply issues.

The region struggled with surplus inventory levels while facing sluggish economic activity in key downstream sectors, particularly textiles and automotive. Further, shifting consumer preferences towards environmentally friendly alternatives impacted the downstream demands. Supply chain complexities and falling benzene costs contributed to the downward price trajectory of caprolactam.

Europe

Just like its Asian counterpart, the European markets witnessed a substantial decline through the quarter, owing to a combination of factors such as weak demand and challenging market conditions. High logistics costs amidst falling trading activity readily impacted the market and thereby, the price. The automotive sector faced increased competition while textile industry experienced decreased demand, maintaining bearish market conditions. The rising shipping costs and delivery uncertainties further contributed to the market complexity.

North America

The North American market observed a positive price trajectory during the quarter, primarily driven by supply disruptions from severe weather conditions. Despite weak downstream demand from automotive and textile sectors, hurricanes significantly impacted the supply chain dynamics, particularly affecting port operations in Texas. The restricted port operations and logistics constraints readily impacted the market and thereby, the price. The presence of significant supply disruptions limited product availability, further contributing to the bullish market conditions.

Analyst Insight

According to Procurement Resource, the price of Caprolactam is likely to remain mixed across regions going forward. While supply disruptions support prices in North America, weak downstream demand in Asia and Europe continues to pressure the market.
 

Caprolactam Price Trend for the Q2 of 2024

Asia

The Asian region encountered persistent downward pressure throughout the said quarter, driven by market fundamentals. The territory managed excess product availability while experiencing muted activity in core consumer segments. Additionally, seasonal market patterns and international trade tensions affected regional trade flows. Raw material price stability and reduced manufacturing rates contributed to the bearish price trend of caprolactam.

Europe

The European market demonstrated price stability through the second quarter, differing from other global regions. Manufacturing rates remained moderate while stock levels stayed sufficient to meet current demand. However, high financing costs and regional uncertainties led to reserved purchasing patterns. The construction and transportation equipment sectors showed limited consumption, though some positive momentum emerged versus the previous period.

North America

The North American domestic market showed a steady pattern during the second quarter despite challenging conditions. The region faced inventory buildup coupled with reduced buying activity from major end-use industries. Further, transportation constraints and elevated shipping costs hampered export opportunities. Market participants maintained cautious positions throughout the quarter, contributing to downward price movement in the caprolactam sector.

Analyst Insight

According to Procurement Resource, the price for Caprolactam will likely exhibit regional variations in the coming months. Market fundamentals and broader economic factors will continue to shape pricing dynamics in the coming months.
 

Caprolactam Price Trend for the Q1 of 2024

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Asia

The major driver of the caprolactam market in Asian countries is the downstream nylon sector. Along with the nylon industries, other end-user sectors performed well during the first quarter of 2024, supporting an incline in the price trend of caprolactam.

The market also grew with the rise in the cost of crude oil and other raw materials, which drove up the overall cost of production, forcing the traders to raise their price quotations. Additionally, the rise in the profit margins from limited exported volumes to European countries further worked in favor of the Asian caprolactam market. The ongoing geopolitical crises, imbalances in the supply-demand rates, and rising awareness about sustainable choices supported an uptrend in the c caprolactam in Q1 of 2024.

Europe

The European caprolactam prices maintained stability despite rising feedstock prices, notably for benzene and naphtha. During the first quarter of 2024, the geopolitical tensions in the Middle East have spurred fluctuations in crude oil prices, impacting global energy markets. However, weak demand from downstream industries in Europe, particularly in the textile and automotive sectors, led to a reduction in operational rates and a decline in the number of fresh orders for caprolactam.

In Germany, the Polyamide 6 market remained stagnant, with minimal transactions and average buying activity for caprolactam, exerting a negative influence on the market momentum. Additionally, declining sales of new cars, particularly electric vehicles, and a decrease in export orders have further dampened demand.

North America

In the previous quarter, the caprolactam market bore the ill consequences of a number of challenges, such as economic volatility, falling demand, and excessive supplies. However, the dynamics of the market changed during the first quarter of 2024. The major cause of this sudden upturn in the market condition was the slow influx of overseas produce and the rise in the domestic operational rates.

Due to the increase in turbulence in the transportation sector with the blockage of the Red Sea route and rising geopolitical tensions, the freight charges inclined, leading to an abrupt surge in the imported caprolactam. In view of this, the consumers moved towards domestic produce which helped the traders in increasing their pricing quotations of caprolactam.

Analyst Insight

According to Procurement Resource, the price trend of Caprolactam is estimated to stabilize and attain stagnancy in the upcoming months as the polymer sector has likely saturated in terms of demand for the commodity, and the fluctuating prices of raw materials might only offer limited support.
 

Caprolactam Price Trend for the October - December of 2023

Asia

Caprolactam, a cyclic amide, observed weak market trend during the fourth quarter of the year 2023. Caprolactam, which uses other cyclic compounds like phenol, cyclohexane, and oximes for its production, witnessed a close alliance with its feedstock phenol price trend during the given time frame.

The demands from various consumption industries like textiles and automobiles also influenced caprolactam price trend. However, the inventory stocks were already running high in Asia during this time, primarily because of the slumped industrial activities for the majority of this year.

The international trade for caprolactam was also very limited. So, the price trend for caprolactam kept on a downhill trajectory throughout the said period. These trend were similar to the feedstock phenol price trend in the Asian region during this time. Overall, dull market sentiments were observed for Caprolactam throughout the entire period of Q4’23.

Europe

The European Caprolactam market behaved no differently than the Asian market as the price trend were observed to be depreciating here as well. The unconsumed stockpiles pushed the caprolactam market trend downwards. Dull demands from the polymer and plastic industries added to the downward push. Falling raw material prices also didn’t help in raising the Caprolactam prices. Conclusively, dull market trend were observed for Caprolactam throughout the said period in the European markets.

North America

The US Caprolactam market too followed its Asian and European counterparts in the final quarter of 2023. Retardation in market offtakes and ample supplies forced the Caprolactam rates down. The general market run was observed to be underwhelming during the discussed period.

Analyst Insight

According to Procurement Resource, the Caprolactam price trend are expected to continue falling in the coming months as well; since the downstream industries are not indicating any upliftment in the market demands, the prices are likely to remain wavering at the lower end.
 

Caprolactam Price Trend for the July - September of 2023

Asia

Caprolactam experienced fluctuating price patterns during the third quarter of 2023. After starting slow at the beginning of the quarter, the prices picked up momentum mid-quarter. Feedstock benzene prices primarily dictated the caprolactam market dynamics along with the posed demands from the dyes, fillers, chemicals, and surface product industries.

The inventories were sufficient at the beginning of Q3; however, the demands rose from feeble to considerable and long pushed the market trend up. However, as the last month of the quarter arrived, the caprolactam demands again started taking a backseat, and the excess inventories started to dominate the market trend. Overall, mixed market trend were observed.

Europe

The European caprolactam market still remained under inflationary pressure. Domestic production suffered gravely because of the war being fought in the European backyard. The hiked interest rates weakened the end customer purchasing powers in the long run, which is why the consumption became centered around necessities, especially in Europe. Overall, lackluster demands promoted feeble market dynamics for caprolactam in the region.

North America

The North American market fluctuated within a narrow range for caprolactam during the discussed period. The upstream cost support was not noteworthy, especially from the feedstock side. Albeit the stable demands almost got the caprolactam price graph to plateau. Overall, wavering price trend were observed.

Analyst Insight

According to Procurement Resource, the caprolactam prices will continue to fluctuate going forward since the global economic dynamics will play a key role in determining the price patterns.
 

Caprolactam Price Trend for the First Half of 2023

Asia

Fluctuating price trend were observed for Caprolactam during the said period in the Asian regional market. These price patterns were primarily dominated by dull downstream demands, given that the present inventory stocks could easily cater to the existing demands. Declined upstream costs because of the decreased crude oil and freight costs also played a crucial role by depleting the cost support. Overall, bearish market sentiments were observed.

Europe

The European Caprolactam market could not behave any differently than the Asian Caprolactam market during H1 2023. Since the consumer sentiment was very necessity-centric, Caprolactam didn’t get much interest, resulting in feeble downstream and end consumer demands. Restored supply chains and improved freight situation also reduced the cost support significantly. So, dull demands amidst high inflation led the Caprolactam prices on a declining trajectory. Overall, low swinging price trend were observed.

North America

The North American Caprolactam market followed the global slowing trend throughout the said period. The market remained riddled with dull demands and filled inventories. In order to move the inventories, suppliers kept discounting the prices. But to their dismay, the demands didn’t pick up as the collapse of two major US banks had given a major blow to the buyer sentiments in the region. So, the Caprolactam prices kept wavering on the lower end of the curve.

Analyst Insight

According to Procurement Resource, price trend for Caprolactam are expected to fluctuate similarly in the upcoming months since the downstream demands will remain unsettled amid rising inflation.

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