SunSirs: Chinese Polyamide Market in May

According to SunSirs data statistics, as of May 28, Jiangsu polyamide DTY reported 15,333 yuan/ton, up 167 yuan/ton from the beginning of May, an increase of 1.10%, a year-on-year decrease of 23.21%; polyamide POY price was reported at 12,720 yuan/ton The price rose by 200 yuan/ton, an increase of 1.60%, down 25.61% year-on-year; the price of polyamide FDY was reported at 16,250 yuan/ton, and the price rose by 500 yuan/ton, an increase of 3.17%, down 23.89% year-on-year. In May, economic activity in many countries gradually recovered and boosted market confidence. Crude oil rose sharply, nylon raw material prices rebounded, and filament prices rose with raw materials.

The economies of many countries have gradually recovered, and crude oil prices have continued to rise. As of May 27, WTI crude oil futures rose by 73.66% on a monthly basis. However, in late May, Sino-US trade relations were tense, crude oil rose less, and there was a risk of falling.

In the first half of May, crude oil surged strongly supported the Polyamide raw material end. At the same time, due to the shutdown of some devices and the delayed recovery of the industrial chain, the short-term supply of caprolactam was tight, stimulating the upstream and downstream quotations, and the caprolactam market was once pushed up by 10,100 -10,300 yuan / ton acceptance delivery. However, with the return of spot supply of cyclohexanone, high prices have decreased, low market prices have emerged, and external quotations have stabilized.

Due to the supply of raw materials, the price of PA6 continued its strong upward trend. As can be seen from the figure, PA6 has a strong correlation with caprolactam, and the increase in some periods is comparable. PA6 was boosted by the tight supply of caprolactam, but the actual transaction did not improve much. The upstream raw material supply will be replenished, but there is a large upward driving force in the short term. In the second half of May, Sino-US trade relations were tense, and the market was cautious about rising oil prices. Later, crude oil rose weaker, derivative products followed up slowly, downstream demand was light, caprolactam supply gradually recovered, and the market returned to stability.

In May, the market price of nylon raw materials was generally raised, which led to the price increase of polyamide yarn manufacturers. However, there was no major improvement in downstream demand, and the momentum for continued rise was lacking. The Sino-US trade relationship is tense, and crude oil may be sensitive to this. It is not ruled out that there may be a fall. Once the raw material cost support collapses, polyamides are not spared. The price of polyamide is expected to stabilize, and prices are raised cautiously.

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