Caprolactam: Cycles

A four-year low and a 20% Chinese output cut

What this tab covers How its prices and margins move: past booms and busts with price levels, the spread or margin that the industry watches, the drivers of the cycle and the metrics to track.

Caprolactam price follows benzene plus a conversion margin set by nylon 6 demand and Chinese capacity. China's capacity surge from 2021 drove prices to multi-year lows; SunSirs reported a four-year low. Chinese producers then coordinated a 20% output cut in November 2025, which lifted domestic prices by CNY450-500/t in two weeks. The floor is set by such cuts and by closures in Europe; the ceiling by textile restocking and benzene spikes. Ammonium sulphate prices add a second cycle.

The spread to watch Caprolactam minus benzene (plus ammonium sulphate credit)

Approximate margin: caprolactam minus 0.9 x benzene minus other variable costs, plus by-product AS revenue. Recent levels not published in sources reached; OPIS reported cost and demand pressure for caprolactam in April-May 2026.

Booms and busts

2021-2022
Post-COVID textile restocking and high benzene prices lifted caprolactam; European producers benefited from high fertiliser prices for ammonium sulphate (indicative).
not published in sources reached
2023-2025
Chinese capacity reached 63% of the world's 9.9 Mt/yr. Prices hit a four-year low (SunSirs headline). Europe's Fibrant and Domo retreated.
not published in sources reached; SunSirs reported a four-year low
November 2025
Chinese producers agreed a 20% across-the-board output cut on 5 November. Domestic prices rose quickly and nylon 6 chip prices followed.
East China molten caprolactam CNY8,600-8,650/t, up CNY450-500/t over 6-20 Nov 2025; nylon 6 FOB China $1,170/t (Chemical Week)

What drives the cycle

Chinese capacity and discipline. 63% of world capacity; coordinated cuts can move prices quickly.
Nylon 6 textile demand. About 45% of demand is textile filament.
Benzene price. Main feed cost; spiked in March-April 2026.
Ammonium sulphate prices. By-product credit can be $100-200 per t of caprolactam (indicative).

Metrics to track

Metric	Why it matters	Where to track it
East China molten caprolactam price	Main market reference	Chemical Week, SunSirs, CCF
Nylon 6 chip prices	Downstream pull	Platts, CCF
Ammonium sulphate prices	By-product credit	Argus, CRU