Discussion on price fluctuation of polyacrylamide

- May 24, 2019-

Zibo QUANSEN mainly produces water treatment polyacrylamide PAM products, which are mainly used in various water treatment, oil field production and environmental protection.

Polyacrylamide referred to as PAM, divided into cationic, anionic, non-ionic and zwitterionic, the main raw materials are acrylamide, acrylic acid and DAC.The price of PAM often fluctuates due to the fluctuation of raw material price.

Among them, the price fluctuation of acrylamide has the greatest impact on PAM. Acrylamide is referred to as AM. Generally, the price fluctuation of PAM has the following aspects:

1. The price is usually the lowest at the end of each year, and then slowly rises around march, reaches the highest around September, and then slowly declines.

This is mainly due to the price effect of acrylamide.The raw material of acrylamide is propylene cyanide. Usually, the manufacturer conducts annual maintenance at the highest temperature every year, so the supply is tight and the price rises.

2. The starting of new propylene cyanide device and the sudden stopping of large production enterprises will also affect the price of PAM

3. The impact of trade, as about 30% of the domestic acrylonitrile comes from imports, the impact of trade policy on PAM price fluctuation is also relatively large.

At the same time, the biggest use of propylene cyanide is the production of chemical fiber, its downstream products are cloth and clothing, about 45% of the domestic production share for export, so the impact of foreign trade policy on PAM price is also relatively large.

4. Other aspects, such as the distance between PAM production enterprises and AM production enterprises, and whether PAM production enterprises have AM production capacity, have a great impact on PAM price.The main reason is that AM is usually 30% or 50% of the solid liquid, the transportation cost is relatively large.On the other hand, if PAM manufacturers produce AM by themselves, the sales price of PAM can be appropriately reduced. In order to gain a competitive advantage, the production profit of AM can be neglected. Of course, the cost of transportation of AM is also an advantage.

5. Since PAM large enterprises usually produce AM with supporting equipment, their relatively large inventory of propylene cyanide and more advanced contracts will lead to a lag time of about 1 month after the price fluctuation of AM is reflected in PAM's price. Of course, it will be faster for small manufacturers.

Therefore, it is more economical to purchase from large manufacturers about one month after AM price rises. Similarly, it is more economical to purchase from small manufacturers about one month after AM price declines.