Caprolactam Market Driven by Emerging Asian Economies

Caprolactam Global Market to 2020 – Growth driven by Rising Demand from Nylon Fiber and Resin and Films Applications in China, a report from GBI Research indicates that production levels of caprolactam, a chemical primarily used in the production of nylon fibers and resins, are rising in Asia as industrial demand builds. The chemical is used in the manufacturing of textiles, carpets, industrial yarns and films. Nylon resins are also used in engineering plastics; their resistance to oils and greases has led to their utility in engine covers, gears and bearings.

Global demand for caprolactam has been steadily increasing, from 3,503,390 tons in 2000 to 4,164,201 tons in 2011. The report predicts taht this figure will reach 5,992,732 tons by 2020. As demand in developed economies has matured, growth in Asia-Pacific economies has spurred global caprolactam demand. Those economies are predicted to account for 69.5 percent of total global demand in 2020.

China has emerged as a global caprolactam manufacturing hub due to low feedstock costs and high regional demand for nylon. It accounted for around 46 percent of Asia-Pacific's total demand volumes in 2011. China has recently been witnessing developments in various manufacturing sectors which demand caprolactam. The country's low operating costs encourage local caprolactam production to meet this need. As a result, there have been huge caprolactam capacity additions in the country.

India, Taiwan and Thailand all follow as smaller caprolactam producers, with announced caprolactam capacity additions being made throughout Asia-Pacific by major chemical players. Total capacity expansions are predicted to reach 200,000 tons per year by 2015, with new announced nylon plants in Southeast Asia being expected to take up a portion of the increased output from China.

However, volatility in crude oil prices threatens the profitability of caprolactam producers, as the chemical's feedstock is derived from crude oil. Within the highly competitive global environment, any price volatility in crude oil cannot be directly translated into end-use prices, and this potentially reduces the profitability of manufacturers.

The report provides detailed analysis and forecasts of the major economic and market trends affecting global caprolactam demand in all the major regions of the world. It also provides analysis and description of the major drivers and restraints affecting caprolactam demand in various regions.

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