Caprolactam is an important intermediate for production of polyamide 6 fibres and Engineering Plastics. Around 70% of Caprolactam is used to make polyamide fibres and remaining is used for making polyamide 6 resin for injection moulded parts and extruded films. The demand for Caprolactam is directly linked to consumption of polyamide 6 resin and fibre. China is the largest market for PA 6 and therefore it is also a major consumer of Caprolactam. Caprolactam imports in China peaked in year 2012 which was around 700 KT and then imports declined on the back of rise in new Caprolactam capacity in China. Still China imported around 220 KT Caprolactam which was mainly imported from European market last year. Major realignment can be seen in European and US market, with BASF reducing its Caprolactam capacity at its Ludwigshafen, Germany site by 100 KT (Sept 2016) and Fibrant (DSM -CVC capital JV) plans to scale down its Caprolactam capacity at its Augusta, US. China s focus towards self-sufficiency has forced major Caprolactam and polyamide producers to realign with the market conditions. Effect of reduction in Caprolactam supply was seen in spot price of Caprolactam in the months of November-December last year.
Most of the Caprolactam manufacturers are in China, USA, Mexico, Brazil, Italy, Belgium, Netherlands, Germany, Russia, Belarus, Bulgaria, Czech Republic, Romania, Japan, India, South Korea, Thailand and Taiwan.
The major players in Caprolactam market are BASF SE, Fibrant (DSM-CVC capital partners JV), Lanxess, DOMO, ALPEX, AdvanSix (Formerly Honeywell), UBE Industries Ltd., Toray Industries Inc., Zaklady Azotowe Tarnowe, Grupa Azoty, Sinopec Baling Petrochemicals, Shangdong Hali, Zhejiang Juhua Co. Ltd, FACT, GSFC and Shandong Hongye Group.
The global Caprolactam demand was estimated to be over 5500 Kilo tons in year 2016 which has grown at aggregate rate of 3% between 2012 and 2016. Utilization rates were around 78% in year 2016. Utilization rates declined from 90% to 78% between years 2012 to 2016 due to major capacity additions in China causing global Caprolactam demand-supply imbalance and restructuring in America & European Market.
China, North America, Europe and Japan are major Caprolactam exporters globally. Historically, Japan has exported an average of 100 kilo tons of Caprolactam. However, the country has witnessed a plant closure since 2015. Sumitomo Chemicals, had a production capacity of 190 kilo tons of Caprolactam (95 kilo tons liquid-phase and 85 kilo tons vapor phase) as of 2014. However, the company ceased its Liquid-phase production line in 2015 and is now in the phase of shutting down the other caprolactam facility of 85 kilo tons at its Ehime Works, Niihama city, Japan amid China s increased production and exports of the Caprolactam to the world.
