Benzene all time high

Benzene prices in Asia hit all-time high on tight spot supply as market continued to be bullish. Thus, 2012 ended with benzene prices jumping 35-40% across markets. In Asia, they were up 38% clocking high and lows of US$1,000 a ton and US$1,480 a ton respectively. They first began to firm in mid-August when a spate of scheduled and unplanned shutdowns in China resulted in a large supply deficit. In Europe, benzene was dearer by 36% during the year while US market saw benzene price go up 39%.

Caprolactum markets firmed up a bit on strong raw material cost, despite the lusterless downstream demand. Spot market saw more enquiries emerge which supported slightly higher prices. Improved caprolactum prices bolstered sentiment and nylon chip markets went firm, while the fundamentals of ample supply on high run rates and warming downstream demand resulted in a balanced sales/production ratio. On demand side, in textile-yarn sector prices experienced little increases, while margins remained passable. Coupled with a passable DTY sector, demand for nylon chips improved amid healthy buying sentiment. The uptick in both caprolactum and nylon chip prices had a sober impact on downstream nylon filament yarn markets where prices remained stable to down. Demand from downstream textile sectors was inching up but did not improve significantly.