GSFC, FACT spurt after caprolactam prices hit 2-year high

Shares of Fertilizers and Chemicals Travancore and Gujarat State Fertilizers & Chemicals jumped by 5.42% and 9.29% respectively at 14:49 IST on BSE after prices of caprolactam hit a two-year high last week.

Gujarat State Fertilizers & Chemicals (GSFC) (up 9.29% to Rs 95.85) and Fertilizers and Chemicals Travancore (FACT) (up 5.42% to Rs 24.30), edged higher.

The S&P BSE Sensex was down 50.03 points, or 0.19% at 26,439.53.

According to media reports, Asian caprolactam hit a 2-year high on Thursday, 15 December 2016, with the CFR Far East Asia marker assessed by S&P Global Platts at $1,830 per metric tonne. The last time the price was at this level was on 18 December 2014, when the Platts CFR Far East Asia marker was assessed at $1,900 a metric tonne.

Caprolactam, a derivative of benzene, is used for manufacturing nylon, tyre-cord, textile filament yarn and engineering plastics.

GSFC and FACT are two major manufacturers of caprolactam in India. GSFC has two caprolactam plants having rated capacities of 20,000 tonnes per annum (TPA) and 50,000 TPA. Meanwhile, FACT has the capacity to produce 50,000 tonnes of caprolactam in a year. FACT exports caprolactam to various countries, including the US.

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