Crude Oil Prices Plunge Sharply, Nylon Prices Down

In the first 3 days, downstream demand was generally low, raw material end support was insufficient, and nylon prices fell. According to the statistics of business community, as of March 12th, the DTY of nylon filament in Jiangsu area was reported to be 16367 yuan / ton, down by 366 yuan / ton, or 2.19%, down 23.16% from the same period in December January. The price of nylon POY was 14000 yuan / ton, down 260 yuan / ton, or 1.82%, down 23.58% from the same period last year, and the price of nylon FDY was 17833 yuan / ton, down by 167 yuan / ton, or 0.94%, down from last year.

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Recently, because of OPEC's ministerial meeting in Vienna, Saudi Arabia and Russia made serious differences in the production reduction agreement, which triggered a crude oil slump, and domestic crude oil futures closed for several days. As of March 12th, the closing price of domestic crude oil main contract 2005 contract was 261.1 yuan / barrel, or 8.29%. The cost of support has dropped, chemical products have been falling, cyclohexanone dropped 183 yuan / ton compared with a year ago, caprolactam fell 800 yuan / ton, PA6 fell 567 yuan / ton.

Crude oil leads chemical products to explore the bottom. In terms of raw materials, the market of cyclohexanone is running weak. In the beginning of March, the main factory was 7200-7300 yuan / ton. Sinopec's price of pure benzene and caprolactam has been lowered, and price reduction is the general trend. In the short term, caprolactam is still dominated by digestion, but downstream slicing enterprises have more stock. Nylon manufacturers have not stocked their stock years ago, and demand is still weak, and the operating rate is generally low. Only part of the bargain buying is replenished. The price of raw materials has a further downward trend, and the whole industrial chain has entered the price reduction period.

Nylon manufacturers started construction in mid February, and the start-up rate of some factories was around 50%-67%, most of which were already ordered production. Because the price of raw materials is still expected to be lowered, manufacturers should wait and see less and purchase less. If the slicing manufacturers want to go stock, they have to lower the selling price, speed up the price adjustment measures in the industrial chain, and synchronize downward testing of nylon filament. From the price chart of cyclohexanone and nylon POY, it can be seen that the time of turning point of cyclohexanone price is earlier than that of nylon, on the one hand, it may also be the effect of reemployment time. On the other hand, the influence of cyclohexanone on crude oil is more direct, and downstream needs time to digest existing stock.

Manufacturers indicate that the cost is down, and that nylon is still down. Business analysts believe that crude oil has been falling down, production costs will be redrawn and the price of nylon is expected to move downward.