# Caprolactam: Cycles

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

Source page: https://www.materialinsights.org/chemicals/caprolactam/cycles/

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

1. 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

2. 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

3. 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 |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/caprolactam/index.md)
- [Overview](https://www.materialinsights.org/chemicals/caprolactam/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/caprolactam/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/caprolactam/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/caprolactam/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/caprolactam/feedstocks/index.md)
- [Trading](https://www.materialinsights.org/chemicals/caprolactam/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/caprolactam/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/caprolactam/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/caprolactam/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/caprolactam/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/caprolactam/links/index.md)