Price trend

According to the data of SunSirs, the average factory price of domestic caprolactam liquid on May 1 was 8,533 RMB/ton, and the average factory price of domestic caprolactam liquid on May 31 was 9,916 RMB/ton, and the price rose 16.21% this month.

Analysis review   

Product: The domestic supply of caprolactam was tight this month, and there were few stocks. Enterprises actively pushed up prices. With the increase in raw material prices, the price of caprolactam increased. It started to rise sharply in early May, and prices gradually stabilized from mid-May to the end of the month. As of the end of the month, Shandong Luxi Chemical's caprolactam liquid price was 9,400 RMB/ton, the factory was cashed out, and the factory had a production capacity of 300,000 tons. The price of Nanjing Dongfang's Caprolactam liquid was 10,200 RMB/ton, the 400,000-ton/year plant started normally, and the caprolactam plant operated normally. The price of Baling Hengyi Caprolactam liquid was 10,200 RMB/ton, and the 450,000 tons/year device was normally started and accepted for delivery. Baling Petrochemical's caprolactam liquid price was 10,200 RMB/ton, and the 300,000 tons/year device was normally started and accepted for delivery.

Industry chain: Raw material pure benzene rose 19.21% this month. The highest price this month appeared on May 28-31, the price was 3,600 RMB/ton; the lowest value was May 2-5, the price was 2,960 RMB/ton, and the price difference was 640 RMB/ton. Sinopec raised the listing price of pure benzene five times this month, raising a total of 700 RMB/ton to 3,500 RMB/ton. The pure benzene market this month was mainly boosted by crude oil and favorable external disks. With the recovery of public health incidents, foreign embargo measures have been gradually relaxed, and the market for crude oil and chemical products has rebounded. However, the current domestic price is higher than the import price, which suppresses the sharp rise in the domestic price of pure benzene.

Industry: According to the price monitoring of SunSirs, in May 2020, there were a total of 47 commodities rising in the chemical sector of the commodity price rise and fall list, of which 31 commodities rose more than 5%, accounting for 34.4% of the monitored commodities in this sector ; The top three commodities for the increase were ethylene (69.89%), chloroform (67.86%), and crude benzene (24.52%).There were 37 kinds of commodities that fell sequentially, and 16 kinds of commodities that fell more than 5%, accounting for 17.8% of the monitored commodities in this sector; the top three products that fell were R134a (-15.67%) and potassium chloride (-15.14 %), propane (-11.97%). The average monthly increase or decrease was 3.66%.

Market outlook

According to a caprolactam analyst of SunSirs, due to the sharp increase in costs this month, the tight supply of caprolactam in stock has caused prices to rise. In the later period, if the cost is stable and the supply increases, supplier pressure will increase, depending on the follow-up situation of the downstream polymerization plant. It is expected that the caprolactam market will be consolidated and operated in the short term.

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