SunSirs: How about the Future Market of Caprolactam after Ups and downs in April

Price trend

According to the data in the bulk list of SunSirs, the average ex factory price of domestic liquid caprolactam on April 1 was 8,800 RMB/ton, and the average ex factory price of domestic liquid caprolactam on April 30 was 8,533 RMB/ton, with the monthly price falling by 3.03%. The highest increase in the month was 12.34%. The highest decline in the month was 10.98%.

Analysis review   

Product: In April, caprolactam market rose and fell sharply, and the overall price fell. Caprolactam prices fell sharply in the first week of this month due to changes in crude oil and raw material benzene prices. The price of caprolactam rose sharply in the second week. The price of caprolactam stabilized in the third week. Prices began to fall in the fourth week. As of the end of April, the price of caprolactam liquid in Shandong Luxi Chemical Co., Ltd. was 8,100 RMB/ton, cash was delivered from the factory, the manufacturer's capacity was 300,000 tons/year, and the actual transaction was negotiable. The price of Nanjing Dongfang caprolactam liquid was 8,900 RMB/ton, the 400,000 ton/year unit was in normal operation, and the caprolactam unit was in normal operation. The price of Baling Hengyi caprolactam liquid was 8,700 RMB/ton, and the 450,000 ton / year unit was normally started and delivered by acceptance. The price of caprolactam liquid in Baling Petrochemical Company was 8,700 RMB/ton, and the 300,000 ton / year unit was normally started and delivered by acceptance.

Industrial chain: The port inventory of raw material pure benzene continued to accumulate this month, but the increase decreased. After this month's Qingming Festival holiday, the pure benzene market was affected by crude oil and external market, bottom reading rebounded, and downstream purchasing was positive, with a rebound of more than 30%. The spot supply in Shandong was tight, and the price increase was more obvious. After two weeks of hoarding, the downstream procurement speed slowed down significantly. In the late ten days, crude oil plummeted and pure benzene began to decline. This month's downstream PA6 market shock was also affected by the adjustment of the cost end shock. The effect of resumption of production in polymerization plant began to show. At present, supply is on the rise, and social inventory is on the rise. In addition, the downstream mainly adopts the strategy of just need replenishment, with less consumption. The inventory consumption of slicing enterprises is still slow, and the mentality of businesses is not strong. The contradiction between supply and demand has intensified. At present, the price of PA6 in China has fallen.

Industry: According to the price monitoring of SunSirs, in April 2020, there were 39 kinds of commodities in the chemical industry sector of the rise and fall of bulk commodity prices list, including 26 kinds of commodities with an increase rate of more than 5%, accounting for 29.2% of the number of commodities monitored in the sector; the top three commodities with an increase rate were acetone (77.02%), acrylic acid (21.76%) and hydrogenated benzene (20.86%). There were a total of 45 commodities that fell sequentially, and 21 commodities that fell more than 5%, accounting for 23.6% of the monitored commodities in the sector; the top 3 products that fell were ethylene (-31.64%) and butadiene (-24.14 %), Hydrochloric acid (-22.37%). The average monthly increase or decrease was 0.37%.

Market outlook

Caprolactam analysts believe that the foreign situation is grim this month, the market volatility. The raw material pure benzene fluctuates frequently with crude oil, the supply increases, and the cost support is weak. The inventory of caprolactam has declined. Due to the overhaul of some enterprises and tight supply, it is expected that the caprolactam market will run steadily in the later stage.

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