The "involution" of the caprolactam industry has intensified

In 2021, the fierce competition in the caprolactam market is an indisputable fact.

According to statistics, this year, Fujian Shenyuan 200,000 tons/year, Inner Mongolia Qinghua 100,000 tons/year, Shandong Hualu Hengsheng 300,000 tons/year, and Lunan Chemical’s 300,000 tons/year caprolactam new plants have been put into operation, plus the existing ones.

In the future, there will be a number of devices planned to be put into production

Enterprise limited production insured price

The substantial increase in production capacity will inevitably lead to market share and profit space disputes, which is also the reason why caprolactam companies are more concentrated in maintenance or production reductions in 2021

Starting from mid-to-late June 2021, Fangming, Yangmei, Luxi, Lubao and other manufacturers have successively shut down for maintenance.

It is precisely because the industry limited production and prices that caprolactam profitability has improved in 2021, and the average profit of enterprises per ton of products has risen to 534 yuan

Suffering from upstream and downstream squeeze

From the point of view of the upstream pure benzene market, there are expectations for later price increases, which will squeeze the profit margin of caprolactam

It is understood that in 2022, Shenghong Refinery and Guangdong Petrochemical's pure benzene plant will be put into operation, with an estimated new capacity of 3.

From the downstream point of view, the main downstream PA6 polymerization capacity of caprolactam has shown an increasing trend in recent years