With the approaching Spring Festival, the demand for caprolactam in chemical raw materials is also gradually shrinking. The production and sales of manufacturers are gradually dwindling. Coupled with the recent heavy snowfall in East China due to heavy snowfall, some transportation Inventory also increased, however, with the cost and the need to support the end of the market or a greater degree of difficulty in the market volatility.
Into January, the domestic caprolactam market continued in a weak downward trend in East China liquid market price from 16,400 yuan / ton fell to 15,900 yuan / ton, near the end of the year, with the terminal textile demand downturn, downstream nylon chip manufacturers started a slight decline , The demand for caprolactam is gradually shrinking, the market downturn, part of the caprolactam manufacturers offer gradually lowered to suppress the market mentality, combined with the heavy snow traffic blocked the market downturn in trading.
From the perspective of the upstream raw materials, the recent domestic benzene market has been in a high order finishing trend.China East benzene market consultation reference 7150-7250 yuan / ton, the import market high, firm prices, support the recent high order.Under the cost of support, Caprolactam domestic market is unlikely to plunge expected.
The overall steady supply of the domestic market recently started to maintain high manufacturers, the main contract for the main buyers, the market has yet to appear tight cargo situation.Now only Nanjing Oriental and Fujian Shenyuan caprolactam device parking conditions, due to weaker demand, the impact on the market supply is limited Due to the shortage of liquid ammonia, two sets of 400,000 tons / year caprolactam units of Nanjing East Park were all stopped on the 29th and are expected to continue till Feb. 4. Fujian Shenyuan has two CPL production lines with the annual output of 400,000 tons on the 12th Parking across the board, waiting for hydrogen supplier to resume supply after overhaul.
Downstream downstream demand gradually weakened, demand began to decline during the Spring Festival. Downstream nylon chips manufacturers although start slightly decline, but the burden is limited, still maintain a high load started, some small factories began to leave in early February, and downstream is more pessimistic about the market outlook By the end of the year, the demand for downstream goods will continue to weaken.
In summary, the market for caprolactam in China is still in a deadlock situation. The raw material is purely benzene, and the price of caprolactam is expected to rise in February and the market will continue to see limited space. The fundamentals of supply and demand of caprolactam are weaker than expected. However, It is estimated that by the end of the year, there will be no hard-line market for domestic caprolactam, and the market will maintain a weak finishing pattern.