Price trend in 2023

 

Gamma Polyglutamic Acid

According to the Commodity Market Analysis System of Business Society, the average market price of caprolactam on January 1st was 11066 yuan/ton, and on December 31st, the average market price of caprolactam was 13842 yuan/ton. The overall domestic caprolactam market rose by 25.08% for the whole year of 2023. The highest value for the year was 14162 yuan/ton on September 21, and the lowest value for the year was 11066 yuan/ton on January 1.

 

2023 Market Analysis

 

In 2023, the domestic caprolactam market fluctuated and rose.

 

In the first half of 2023, the caprolactam market showed a strong upward trend and then fluctuated. In January, the price of raw material pure benzene increased, and cost support strengthened. The spot supply of caprolactam in the market is tight, and the price of caprolactam has increased accordingly. From February to March, the price of caprolactam fluctuated and fell. The supply of caprolactam in the spot market has increased, and the market situation has weakened. In April, due to the increase in the price of pure benzene raw material and strengthened cost support, the market price of caprolactam rose again with the raw material. The downstream PA6 market is improving, with an increase in procurement demand. Partial maintenance of caprolactam equipment in enterprises has led to a decrease in market supply. From May to June, the price of caprolactam fluctuated and fell. The price of raw material pure benzene continues to decline, with insufficient cost support. Downstream demand performance is insufficient, procurement is more cautious, and the market is mostly low price transactions.

 

In the second half of 2023, the caprolactam market continued to rise, then fell and rose again. In mid to early September, the market price of caprolactam fluctuated and increased. The market for raw material pure benzene is strengthening, with favorable cost support. The supply of caprolactam in the market has decreased, and downstream demand has followed up. The focus of caprolactam transactions has increased. From late September to October, the market price of caprolactam fell. The price of raw material pure benzene has been lowered, weakening cost support. Downstream on-demand procurement, weak terminal demand. From November to December, the market price of caprolactam rose again. Some enterprises are undergoing parking and maintenance, resulting in a decrease in local market supply. Downstream procurement is on demand, and the demand side is relatively stable.

 

According to the K-bar chart of 2023, it can be seen that the maximum increase in caprolactam in January 2023 was 14.76%. The largest decline of the year was in February, with a decrease of 4.94%.

 

2024 Aftermarket Forecast

 

Capacity situation

 

In 2023, the total domestic production capacity of caprolactam was 6.53 million tons, an increase of 840000 tons compared to 2022, and a year-on-year increase of 14.8% in production capacity.

 

Cost situation

 

Gamma Polyglutamic acid food grade

In 2023, the price of raw material pure benzene fluctuated, with overall fluctuations and upward movements. On January 1st, the price was 6532 yuan/ton, and on December 31st, the price was 7193 yuan/ton, with an annual price increase of 10.11%. In 2023, the pure benzene industry chain will continue to expand, with a dual increase in supply and demand pattern. The rise in benzene prices in 2023 provides favorable support for the cost side of caprolactam, and the price trend of raw material pure benzene has a significant impact on the caprolactam market.

Supply situation

 

In April 2023, there was a significant maintenance of the caprolactam unit, resulting in a reduction in market supply. Due to the tight spot market, the price of caprolactam has increased. In September, some caprolactam units were unexpectedly shut down, resulting in a further reduction in supply and an increase in caprolactam prices. At the end of the year, some enterprises stopped for maintenance, resulting in a decrease in local market supply.

 

Demand situation

 

In 2023, the estimated growth rate of caprolactam consumption is over 16%, a significant increase from 5.97% in 2022. With the end of the domestic epidemic and the growth of national consumption level, the demand for terminal clothing market has recovered, driving the growth of downstream PA6 slicing and terminal nylon industry demand, and the demand for caprolactam market continues to increase. The steady increase in domestic nylon industry exports also supports caprolactam.

 

summary

 

In summary, the overall market for caprolactam in 2023 has been fluctuating, consolidating, and rising. In 2023, caprolactam production capacity will continue to expand, terminal demand will increase, cost support will be provided, and profitability will improve. With the development of the domestic economy, the demand for caprolactam in the market will continue to increase in 2024, production capacity will continue to increase, industry competition will become more intense, and market prospects will develop positively.

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