Commodity Market: According to the Commodity Market Analysis System of Business Society, in early July, the mainstream market price of polyacrylamide (CPAM, cationic, molecular weight 12 million, 10-30 ionic degree) in China slightly fluctuated and decreased. On the first day, the market reported around 14371 yuan/ton, and on the 10th, it reported around 14285 yuan/ton, a decrease of only 0.6%. Recently, the price of acrylic acid has increased, and some enterprises of polyacrylamide have seen some price increases. Based on the overall market supply situation, some enterprises have reduced their production capacity due to the impact of high temperatures. However, the current market supply is sufficient, mainly due to average downstream demand and weak supply and demand, and the mainstream market continues to be weak.

As shown in the figure, in the early third quarter of 2023, China’s polyacrylamide market remained stable with a slight decline, which was amplified compared to the decline in June.

Raw material acrylonitrile: According to the Commodity Market Analysis System of Business Society, the market price of acrylonitrile in early July increased slightly by 2.38% from 7887 yuan/ton to 8075 yuan/ton. After a slight increase in the raw material propylene market, it slightly declined, and downstream consumers showed resistance to high market prices. In order to stimulate sales, market prices shifted from rising to falling, which weakened their support for the cost of acrylonitrile; Multiple downstream industries of acrylonitrile face weak demand support in the short term, which is difficult to improve; In addition, the supply side is still relatively loose, and the acrylonitrile market is mainly volatile and consolidation in the short term.

Raw Material Acrylic Acid: According to the Commodity Market Analysis System of Business Society, the acrylic acid market slightly increased in early July, from 6012 yuan/ton to 6175 yuan/ton, an increase of 2.7%. Recently, the market price of raw material propylene has slightly decreased, and the cost support has weakened. With the support of some equipment maintenance and supply constraints, acrylic acid companies have steadily increased their quotations, and downstream inquiries have increased their enthusiasm. However, the purchasing mentality is still cautious, and the main focus is on following up in an appropriate amount. It is expected that the acrylic acid market will undergo mild consolidation and operation in the short term, and more market news guidance is needed.

Liquefied natural gas for production. According to the Commodity Market Analysis System of the Business Society, the domestic liquefied natural gas market rose first and then slightly in early July. Among them, the average price of liquefied natural gas in China on the 1st was 4296 yuan/ton, and on the 10th it was 4066 yuan/ton, a decrease of 5.35% in ten days.

Future forecast: There will be a slight increase in raw material prices in the near future, while the fuel market is relatively weak, and the cost of polyacrylamide raw materials will rise to a certain extent. However, due to the abundant supply of goods in the market and the continued low prosperity of the water treatment industry, downstream demand is poor, resulting in poor market transactions; High temperatures have a certain impact on factory operations, but with production and inventory, market supply is normal. Regarding the future market, analysis suggests that polyacrylamide will continue its stable or slightly fluctuating trend.