SunSirs: Raw Materials cannot Support, Chinese Polyamide Prices Fall

According to SunSirs data statistics, as of July 14, Polyamide DTY in Jiangsu reported 15,500 yuan/ton, a decrease of 600 yuan/ton from July 1, a decrease of 3.73%, and a year-on-year decrease of 14.68%; Polyamide POY price reported 13,200 yuan/ Tons, the price fell by 460 yuan/ton, a decrease of 3.37%, and a year-on-year decrease of 15.92%; the price of Polyamide FDY was reported at 16,400 yuan/ton, and the price fell by 350 yuan/ton, a decrease of 2.09%, a year-on-year decrease of 17.79%. Order demand is sparse and normal, raw material prices have fallen, and Polyamide prices have fallen.

The rise in crude oil has slowed. As of July 13, WTI crude oil reported US$40.12 per barrel, with an amplitude of 4.15% in early July, lower than 11.44% in the same period in June. Thanks to planned reductions in crude oil producing countries, crude oil rose from US$20 in mid-April to the current US$40. However, the favorable conditions were basically squeezed out. Under the influence of the epidemic, crude oil began to show the trend of weaving looms in June. In addition, there is market news that OPEC+ is about to relax the scale of production cuts. Saudi Arabia proposes to reduce the scale of production cuts from 9.7 million barrels/day to 7.7 million barrels/day in August. It is reported that OPEC+ countries may make a final decision on this on July 15th, and the upward pressure on crude oil will gradually increase.

As the textile market is in the off season, the problem of inventory pressure has emerged. Downstream procurement has slowed, and the magic of crude oil support is limited. The overall market is poor, the market is short-term short, and generally allow profits to destock. There is ample supply of cyclohexanone, as is the downstream caprolactam. Polymerization and filaments have entered a period of market weakness, and some factories have fallen slightly. On July 7, Sinopec's caprolactam was listed at a price of 10,400 yuan/ton this week, down by 400 yuan/ton. Pulling on the whole body and moving the body, cyclohexanone and PA6 all declined to varying degrees. As of July 14, cyclohexanone fell 6.94%, caprolactam fell 6.09%, and PA6 fell 4.10%.

SunSirs analysts believe that the form of export is not optimistic, the domestic market capacity is limited, and in the context of globalization, internal digestion has been discounted compared to previous years. And summer is the traditional off-season, most of the inventory operations, prices are lower. But some people think that September and October will respond to next year's orders, which may usher in a turnaround at the end of the year, and the short-term Polyamide will run weakly.

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