Recently, the price of polyacrylamide has been rising continuously within a month. The polyacrylamide market has been surging, and the price rise tide has gradually covered the national market. The rise in the price of polyacrylamide belongs to the normal relationship between market supply and demand. The price of acrylonitrile, the raw material for its production, has been rising since July this year, and the production capacity is quite unstable. This has led to the mourning of downstream polyacrylamide manufacturers, coupled with the rise in natural gas prices, environmental protection limits production capacity. Many factors naturally push up the price of polyacrylamide.
The specific analysis reasons are as follows:
The price of acrylonitrile (can) in China may continue to rise due to the closure of domestic devices and the tight supply caused by the interruption of U.S. device production caused by the hurricane.
In the second half of July, China's domestic supply has tightened, because under the high pressure of the Chinese government's continuous environmental supervision, Qilu Petrochemical closed two acrylonitrile units with a total capacity of 80000 tons / year.
A 30000 T / a acrylonitrile unit of Qilu Petrochemical Company was closed on July 15. Three days later, another 50000 T / a unit was also closed. At present, there is no timetable for resuming production. Market participants said that the two sets of devices are unlikely to resume production in the near future.
In addition, more units were closed in August, including a 120000 T / a acrylonitrile unit under Jilin Petrochemical. Another 106000 T / a acrylonitrile unit of the company has been closed since June 12. Market participants said that the closure of these devices was mainly affected by environmental problems. It is estimated that the closure of Qilu Petrochemical and Jilin Petrochemical units will reduce the supply of acrylonitrile in the market by about 20000 tons / month.
In terms of imported resources, hurricane Harvey forced the closure of a large number of refineries and petrochemical units along the Gulf coast of the United States, including 545000 T / a acrylonitrile unit of Ineos and 590000 T / a acrylonitrile unit of ascend.
China is a net importer of acrylonitrile, and 28% of the total imports in 2016 came from the United States.
The closure of us production capacity is expected to affect the negotiation of acrylonitrile spot and contract markets, which will exert upward pressure on the price of China's domestic acrylonitrile market this month.
Therefore, it is estimated that the price of polyacrylamide will continue to rise in the future, and even face the problem of shortage.
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