According to China Chemical News, after hitting a five-year low of 8,050 yuan per ton in early November, the caprolactam market began to rebound from its bottom. On November 24, spot prices in East China rebounded to 8,700 yuan, with North China prices simultaneously reaching 8,700 yuan before continuing to climb. By November 26, East China prices rose to 9,000 yuan, while North China prices reached 8,950 yuan.

Production cuts by enterprises to stabilize prices have been the core driver behind this rebound. Recently, caprolactam producers have voluntarily coordinated a self-discipline initiative combining “production reduction + price stabilization.” As these measures are progressively implemented, improving supply-demand expectations, the spot price center for caprolactam is expected to continue its upward trajectory.

Previously, prices hit a five-year low with losses of 600 yuan per ton. During the 14th Five-Year Plan period, China's caprolactam industry maintained rapid growth, driving the swift development of nylon 6 and downstream sectors.

Business Monitor tracking data indicates that in 2024, caprolactam capacity increased to 6.94 million tons, with output rising to 6.54 million tons. In the first half of 2025, new capacity in the downstream nylon 6 sector continued to come online, with caprolactam industry operating rates maintained above 90%. Entering October, the first phase of Guangxi Hengyi New Materials' integrated caprolactam-polyamide project, with an annual capacity of 1.2 million tons, commenced operations. This brought total annual caprolactam capacity to over 8 million tons, with projected annual output reaching 6.85 million tons.

On the demand side, caprolactam consumption has grown at a CAGR of 13.5% over the past five years, though annual growth rates varied. Demand accelerated from 2023 to 2024, particularly in 2024 when downstream textile demand boosted caprolactam consumption growth to 28%, reaching an apparent consumption of 6.49 million tons that year.

In 2025, caprolactam demand growth slowed significantly, with the industry chain facing triple pressures: weak costs, sluggish demand, and high inventories. After reaching an annual peak of 11,171 yuan in February, the market trend declined steadily. This was driven by factors including slower-than-expected recovery in domestic textiles, declining orders for apparel and home textiles, market sentiment affected by Sino-US friction, and falling oil prices weakening raw material support. By early November, spot prices in the East China market dropped to 8,050 yuan (delivered with acceptance), hitting a five-year low.

Concurrently, the caprolactam industry's profitability continued to deteriorate, operating at a loss throughout the year. The average production profit from January to October was -1,557 yuan. Even when accounting for revenue from the byproduct ammonium sulfate, the average plant profit remained at -16 yuan. In October, when prices neared their trough, some enterprises recorded plant losses exceeding 600 yuan.

In fact, both upstream and downstream sectors of the caprolactam industry struggled this year. By early November, the upstream benzene industry saw gross margins drop to -10%, while the cyclohexanone sector suffered even deeper losses. Downstream, nylon 6 chips experienced minor price inversions, and nylon filament also operated at a loss. This chain reaction has caused the entire industry chain to endure significant hardship.

Companies Voluntarily Cut Output by 20%, Prices Rebound 11% Within the Month Under sustained loss pressure, caprolactam producers demonstrated strong willingness to reduce output to stabilize prices and began taking action. Multiple companies announced phased production cuts of 20% to shrink supply, while raising product prices by 100 yuan per ton. By November 20, the industry's overall operating rate had dropped to around 80%.

As caprolactam supply gradually contracted, industry inventories fell to approximately 32,500 tons by November 20. Tightened supply further bolstered prices. By November 26, the spot price of caprolactam in the East China market rose to 9,000 yuan (acceptance delivery), up 950 yuan from the low point at the beginning of the month, representing an increase of 11.8%.

Looking ahead, positive drivers on the caprolactam supply side persist. With production cut plans expected to continue, the supply situation for caprolactam in December is likely to remain tight. Attention should also be paid to how price increases propagate through the supply chain. Downstream nylon 6 chips are expected to gradually follow suit with rising costs. However, the continued ramp-up of new capacity at Guangxi Hengyi and relatively high social inventories in the chip downstream segment may limit the pace of chip price increases.

Notably, Japan's Ube Industries announced an accelerated one-year advance of its production reduction and exit plan in Thailand, affecting products including cyclohexanone and caprolactam. Sumitomo Chemical transferred its caprolactam production technology intellectual property to a Japanese partner. These developments signal accelerated adjustments in the global industrial chain and contracting external supply, presenting both pressure and opportunity for domestic enterprises.

As an integrated internet platform providing benchmark prices, on December 4th, the benchmark price of caprolactam on SunSirs was 9233.33 RMB/ton, an increase of 1.84% compared to the beginning of the month (9066.67 RMB/ton).

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