Caprolactam Liquid Prices May Continue To Decline

- Jan 30, 2019-

1. Yesterday's market conditions:

Yesterday (January 3, 2019), the domestic caprolactam liquid market fell in a narrow range. Due to the downward adjustment of Sinopec's listing price and the cautious influence of downstream purchases, the spot transaction price was reduced. The polymerization factory lacks confidence in the market outlook, insists on the need for procurement, and the liquid spot market transaction price refers to 12300-12500 yuan/ton. Solid manufacturers are shipped with the market, and the market is temporarily sideways.

2. Upstream market: 

(1) International crude oil closed on January 2: Although the US stock market fell again, the market's confidence in the implementation of production cuts increased, coupled with the bad weather, the crude oil exports of Libyan ports were suspended, and international oil prices continued to rise. WTI47.09 rose 0.55 US dollars / barrel; Brent 55.95 rose 1.04 US dollars / barrel. China's SC main force 1903 rose 9.7 to 384.3 yuan / barrel.

(2) Asian pure benzene closed on January 3: 520.17-521.17 US dollars / ton FOB Korea, compared with the previous price increase of 3.67 US dollars / ton.

3. Short-term forecast:

It is expected that the caprolactam market still lacks support, the supply growth expectation but the downstream demand performance is general, the high-speed spinning slicing of the polymerization plant is not smooth, and the raw material procurement is relatively cautious. In the short term, the caprolactam market is dominated by bearish prices, and prices may continue to decline. (Recommended to pay attention to the start of the factory and price changes)