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    Caprolactam: When Will The Market Accelerate To Decline?

    2019/5/23 15:34:00 8349

    Caprolactam

    Since entering the May, the domestic caprolactam market has begun to fall into a downward path, and the market price has been constantly exploring. In less than a month, it has fallen 2200 yuan / ton, and constantly brushed the new low in the new year. However, the supply and demand side of the market continued to be weak, and the short-term improvement was difficult. When did the caprolactam fall down?

    Source: LIAN

    Since the beginning of May, the market of caprolactam in China has begun to decline sharply. The price of liquid market in East China has dropped to 12000-12400 yuan / ton from 14300-14500 yuan / ton, which has dropped by 15.28%. The main reason for this decline is the weakening of terminal demand. With the terminal demand gradually entering the off-season, the downstream polymerization plant inventory is high, slicing market began to decline, corporate profits significantly reduced, aggregate business started to gradually reduce, the demand for caprolactam decreased, caprolactam manufacturers increased pressure, manufacturers continued to price promotions, but lower purchasing enthusiasm, lower market prices began to decline all the way.

    With the falling market price of caprolactam, the profits of enterprises began to shrink significantly. According to the theoretical calculation, the profit of caprolactam enterprises dropped from 3550 yuan / ton to 1225 yuan / ton, down 2325 yuan / ton. At present, the profits of enterprises are relatively low, and the manufacturers' intention to lower prices is lower. Some manufacturers started to maintain 6-7 of the low load, short-term caprolactam manufacturers started enthusiasm is still low, some manufacturers still have maintenance plans later.

    Downstream slicing needs or will remain low. Terminal demand has gradually entered the off-season, slicing demand has slowed down, and factory profits have been low, factory start-up load has declined, and the overall demand for caprolactam has been reduced. With the caprolactam market declining, the downstream buying tends to be cautious, waiting for the market to hit bottom, and the short-term market atmosphere is still empty.  

    According to LIAN, at present, the caprolactam market is still short of air, and the downstream demand is not improving for the short term. The caprolactam manufacturers have great pressure on the shipment, but the profits of enterprises are relatively low, and enterprises continue to lower their price intention. Therefore, the market of the caprolactam Market will slow down or the market will gradually become low.

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