SunSirs: Crude oil Prices Dive Sharply, Polyamide Declines

Downstream demand was average in early March, raw material end support was insufficient, and polyamide prices fell. According to statistics from SunSirs, as of March 12, the polyamide DTY in Jiangsu region was reported at 16,367 RMB/ton, down 366 RMB/ton from January 12, a 2.19% decrease, and a decrease of 23.16% year-on-year; the price of polyamide POY was reported at 14,000 RMB/ton, down 260 RMB/ton, down 1.82%, down 23.58% year-on-year. The price of polyamide FDY was 17,833 RMB/ton, down 167 RMB/ton, down 0.94%, and down 23.30% year-on-year.

Recently, due to OPEC ’s ministerial meeting in Vienna, Saudi Arabia and Russia had serious differences in the production reduction agreement, which has led to a plunge in crude oil. The contract closing price was 261.1 RMB/barrel, a decrease of 8.29%. Without cost support, chemical products followed suit. Cyclohexanone fell by 183 RMB/ton, caprolactam by 800 RMB/ton, and PA6 by 567 RMB/ton.

Crude oil led chemical products to the bottom. In terms of raw materials, the market for cyclohexanone is weak. In the beginning of March, the mainstream factory price was 7,200-7,300 RMB/ton. The prices of Sinopec's pure benzene and caprolactam were lowered. In the short-term resumption of work, caprolactam is still mainly digested inventories, but downstream slicing companies have more inventories. Polyamide manufacturers have not consumed the stocks before the year. Demand is still weak and the operating rate is average. The price of raw materials has a further downward trend, and the entire industry chain has entered a period of price reduction.

Polyamide n manufacturers started construction in mid-February, with some factories operating at around 50% -67%, most of which are already on order. As the price of raw materials is expected to continue to fall, manufacturers wait and see and purchase less. If chip manufacturers want to destock, they have to lower the selling price and speed up the price adjustment measures of the industry chain. From the price trend chart of cyclohexanone and polyamide POY, it can be seen that the inflection point of cyclohexanone price is earlier than that of polyamide. On the one hand, it may be affected by the resumption time. Directly, downstream needs time to digest the existing inventory.

Manufacturers said that the cost has fallen, and nylon may be adjusted downward in the later period. Analysts from SunSirs believe that the continuous decline in crude oil, production costs may be re-determined, polyamide prices is expected to move downward.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.