Strong Crude Oil Shocks Nylon Filament Prices Rise Slightly

According to the statistics of business associations, as of June 23rd, the DTY of nylon filament in Jiangsu area was reported to be 16000 yuan / ton, up 133 yuan / ton compared with June 16th, or 0.88%, down 10.61% compared with the same period last year. The price of nylon POY was 13600 yuan / ton, and the price rose 80 yuan / ton, or 0.59%, down 11.69% from the same period last year. The price of nylon FDY was 16750 yuan / ton, and the price remained stable, down by 16.67% compared with the same period last year.

As of June 22nd, WTI crude rose by 12.23% over the beginning of June. In terms of crude oil, crude oil continued to rise in the context of OPEC+'s decision to extend the yield reduction agreement to the end of July. However, due to concerns about the epidemic and the negative reduction in some countries, crude oil failed to stand 40 dollars, and fell back to 36 dollars / barrel in the middle of the month. According to the latest forecast issued by Bank of America, the WTI crude oil price in 2020 increased from 32 US dollars to 39.7 US dollars per barrel. Crude oil stopped falling and shocks rose.

The support for the crude oil market is acceptable, while the price of cyclohexanone is basically stable and partly down. In June, the short-term growth of chemical fiber orders, the relative balance between supply and demand of cyclohexanone factories, and the price rise of cyclohexanone from a large number of downstream purchases. Although the supply of caprolactam is tight, the price is rising. But for the cyclohexanone market, the turnover weakened, and the increase was not as good as caprolactam, and the market was passive.

Upstream caprolactam inventory is relatively low, supporting PA6 cost side is strong, but downstream orders slowly digested, raw material procurement slowed down. Because of the strong price of raw materials, the price of nylon manufacturers has been tested again. The price of nylon POY (86D/24F) is 13000-14000 yuan / ton, and the price range of nylon FDY (40D/12F) is 16400-17000 yuan / ton, and nylon DTY (70D/24F) is reported to be 15500-16800 yuan / ton. In the past two weeks, the external quotation is basically stable, and the price adjustment strategy of the manufacturer is in step.

Business analysts believe that caprolactam and PA6 will remain high after rising. Generally speaking, the market price depends on the cost side. With the gradual recovery of caprolactam supply, the raw material terminal also shows signs of loosening. It is expected that the nylon filament will fall slightly in July.