Low Raw Material Costs Deaccelerate the Caprolactam Prices in the USA
- 21-Apr-2023 2:39 PM
- Journalist: Jacob Kutchner
The price of Caprolactam was observed to slightly dipped in March 2023 in the USA market due to low new orders from the overseas market and weak cost pressure from the raw material Benzene. The softer raw material quotations and weak demand foundations are likely to lead to further reductions of Caprolactam in April 2023.
Suppliers did not receive many inquiries about benzene after the economic issues that occurred in the US market impacted the selling prices of raw materials in the USA. The upstream crude oil prices were also moved southwards in March 2023, impacting the price dynamics of Caprolactam's raw material.
In March 2023, the annual inflation rate in the US decreased for nine straight months, which relieved many American consumers and provided some support for the US Federal Reserve's initiative to raise interest rates and support the economy to grow.
In March, consumers' perceptions of the prediction for the short-term business environment marginally improved, and they now anticipate an improvement in the short-term business environment in the coming months.
The amount of small-business optimism in the US decreased in March 2023, and they are currently coping with several challenges, including difficulty finding suitable hires to fill lacking positions, inflation, and supply chain bottlenecks. The deteriorating economic climate in the US market resulted in a decrease in new commodity orders and a decrease in the use of Caprolactam in the textile industry.
According to the ChemAnalyst price monitoring, the cost of Caprolactam hovered around USD 2422/MT on a FOB Texas basis with a monthly depreciation of 0.7% during March 2023.
The Caprolactam prices are expected to decline in April due to the weak -cost pressure from the raw material and slow demand from the downstream textile industry. In April 2023, the decline will likely continue due to the extended market and the lower raw material benzene contract. The Caprolactam market is likely to decline from 1% to 1.5% in April.
