Plummeting Polyamide Prices in the Chinese region: Fall in Feedstock Values
- 21-Jul-2022 6:16 PM
- Journalist: Nina Jiang
The fall in the prices of Polyamide from the exporting countries like Japan, South Korea, Singapore, Germany, and the USA caused a downward shift in the costs of the product within the Chinese market. Most power line manufacturers have maintenance equipment, and companies operate at low loads. The demand was cautious when buying, and the bearish sentiment in the market was extreme. Crude benzene prices continued to fall this week. Affected by this week's drop in crude oil, bulk commodities weakened overall. The inventories of Benzene surged in the regional market with the traders and suppliers.
Market supply pressure remains apparent, and manufacturers saw increased inventory levels. As a result, the price of upstream feedstock pure Benzene fell, and its support for Adipic Acid declined. The downstream procurement is rational, and the demand is not significant.
The third week of July saw a sharp decline in Polyamide prices in the Chinese market, with costs as low as USD 3845/tonne of Polyamide Nylon 66 FOB Dalian (Medium Viscosity), a 3.8% weekly decline, according to data compiled by the Chem Analyst pricing team. Upstream CPL prices decreased this week. Weak external news supports that the price of pure Benzene continued to decline, and crude oil fell. Over time, the domestic refined benzene port inventories and the supply increased. The profit of downstream products has been lost, the demand is reducing, and several plants have shut down for financial reasons.
Shortly, it is anticipated that the CPL market will keep declining. In terms of news, because of the Federal Reserve's prior interest rate increase, the price of crude oil fell globally, and the near- and far-cost sides of PA6 played a less supportive function. The PA6 supply side was robust, and aggregation enterprises' profitability was under pressure.