In July, the mainstream market trend of polyacrylamide (CPAM, cationic, molecular weight 12 million, 10-30 ion degree) in China was weak. On the 29th, the main market price was around 13960 yuan/ton, a decrease of 1.41% from the beginning of the month at 14160 yuan/ton.
The core of polyacrylamide production relies on upstream raw materials such as acrylonitrile. In July, the acrylonitrile market first fell and then rose. As of July 29th, the average price of acrylonitrile was 10533.33 yuan/ton, an increase of 4.46% from the price of 10083.33 yuan/ton on July 1st. At present, major factories in East China are maintaining low load operation, and coupled with the planned shutdown and maintenance of a 260000 ton acrylonitrile plant in Liaoning for about 20 days in mid August, there is still an expectation of further reduction in supply.
On the downstream side, downstream demand continues to weaken, and the amount of sewage sludge generated during the rainy season is lower than expected. Paper and chemical sludge disposal enterprises have reduced their procurement volume, and the market has sufficient spot circulation. Factories have proactively lowered their quotations to promote shipments; Traders’ inventory consumption is slow, leading to a rise in bearish sentiment in the market as they follow the decline in shipments to recoup funds.
Market forecast: The current rise in the cost side acrylonitrile market provides support for the price of polyacrylamide. The high temperatures on the demand side continued in August, and there are currently no favorable factors to boost the market. Downstream demand during the off-season is difficult to quickly recover in the short term, and the pattern of high inventory and sufficient spot goods for enterprises will continue. It is expected that the polyacrylamide market will mainly consolidate in August.
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