SunSirs: Raw Materials’ Cost Dropped, Polyamide DTY Dropped Significantly

According to the statistics of SunSirs, as of April 28, Jiangsu polyamide DTY reported 15,167 yuan / ton, down 1,833 yuan / ton from last Tuesday, a decrease of 10.78%, and a year-on-year decrease of 29.46%; polyamide POY price was reported at 12,520 yuan / ton, down 700 yuan / ton, down 5.30%, down 32.76% year-on-year; the price of polyamide FDY reported at 15,750 yuan / ton, down 250 yuan / ton, down 1.56%, down 31.52% year-on-year.

Crude oil plummeted, and market confidence was hit hard. On April 20, local time in the United States, the price of crude oil futures plummeted. The price of WTI crude oil futures delivered in May plummeted by about 300% to close at -37.63 US dollars per barrel. It fell for the first time in history and fell to a negative value of 40.32 per barrel US dollars. The main contract continued to probe, the settlement price on April 22 was 11.57 US dollars / barrel, and then bottomed out. However, related forecasts indicate that global crude oil inventories have risen sharply, and the pressure on storage capacity will only become more and more serious. The increase in commercial crude oil inventories except for strategic reserves in the United States has exceeded expectations, and the possibility of global oil storage space being exhausted in the next few weeks. Crude oil plunged again on April 27, the price of the US WTI crude oil futures market plunged. The main contract settlement price was reported at 12.78 yuan / barrel, a decrease of 4.16 US dollars or 24.6%.

Crude oil prices took the lead in diving, and chemical products turned down. The average price of pure benzene on April 26 was 3,170 yuan / ton, down 5.37% from April 19. As of April 28, the average price of cyclohexanone fell 147 yuan / ton from last Tuesday, a decrease of 2.63%; caprolactam fell 267 yuan / ton, a decrease of 3.05%; PA6 fell 200 yuan / ton, a decrease of 1.89%.

Insufficient raw material support, masks and tapes quickly cooled, and the price of polyamide DTY fell sharply. Masks and quotations stimulated the boom of polyamide for a short period of time. Enterprises have previously stated that this market will not last long. Some companies have experienced ups and downs, and some companies have adhered to orders and are unmoved. In mid-April, some companies directly raised their quotations by 4,000 yuan / ton, but now the quotation fell by 3,000 yuan / ton. The current offer price of polyamide DTY is still higher than the low price this month. The upstream supply is tight in the short term, and the price of polyamide DTY has been raised as a result of the hype of masks.

There is no bottom line for crude oil decline, and there is an upper limit for the price of masks. The price increase was very bold before, and it is not too late to adjust the price. SunSirs analysts believe that crude oil fluctuates at a low level under the trouble of consumption and inventory, and the cost end is insufficiently supported. From the perspective of the substantial drop in DTY prices, the demand side is still normal, and prices are expected to shift downwards.

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