Commodity Market: According to the Commodity Market Analysis System of Business Society, the mainstream market price of polyacrylamide (CPAM, cationic, molecular weight 12 million, 10-30 ionic degree) in China slightly declined in December. On the 31st, the market reported around 13220 yuan/ton, and on the 1st, it reported around 13300 yuan/ton, with a monthly decline of 0.60%. This month, the raw material acrylonitrile market has declined, the acrylic acid market has risen, and the cost of polyacrylamide has fluctuated. Enterprises in the main production areas are operating normally, and the market has abundant spot supply. Downstream demand has not increased, and the current mainstream market of polyacrylamide is still weak and consolidating.

Raw material acrylonitrile: In December, the acrylonitrile market saw a narrow decline. As of December 31st, the bulk price of acrylonitrile in the market was 9812 yuan/ton, a decrease of 1.88% from the initial 10000 yuan/ton of the month. The price of raw material propylene has weakened, and the cost support for acrylonitrile has weakened; One of the main downstream industries, ABS, has stabilized in the early stages of operation and decreased in the later stages, with demand facing a weakening of acrylonitrile support at the end of the month; In December, the production of acrylonitrile slightly increased but demand support slightly weakened, and the price of acrylonitrile narrowly decreased.

Raw material acrylic acid: The acrylic acid market fluctuated and rose narrowly in December. In the first half of the year, the propylene raw material market experienced a slight decline, but there is still cost pressure in the acrylic acid market. The rise in the downstream butyl acrylate market has boosted the acrylic acid market to a certain extent, and some companies have raised prices. In the off-season of demand, downstream inquiries and procurement enthusiasm are average, and market transactions are mainly in demand. In mid month, there was an increase in market supply, but the demand side was poor. Downstream enterprises mainly consumed inventory, and new market transactions were limited. Some holders offered to sell at a discount. In the latter half of the month, cost pressure has increased, with some factories shutting down, supporting the mentality of enterprises to raise prices. Downstream is in the traditional off-season of consumption, and inquiries and purchases are mainly in demand. As the end of the month approaches, the market is mainly stable, and some enterprises have slightly lowered their prices based on their own situation. The market atmosphere is average.

Liquefied natural gas for production. According to the Commodity Market Analysis System of Shengyishe, the domestic liquefied natural gas prices fell first and then rose in December. In the first half of December, raw gas prices significantly decreased, cost support weakened, and liquid prices concentrated in a decline. Rainy and snowy weather is approaching in many parts of China, leading to poor transportation and restricted market supply of goods. There is a large amount of inventory in the market, and downstream demand is weak. Liquid factories have a strong attitude towards inventory reduction and are willing to reduce prices, resulting in a continuous decline in liquid prices. In terms of sea and gas, some receiving stations have lowered their prices. In the second half of December, there was a slight increase in raw gas prices, increasing cost support and driving up liquid prices. After snowfall, traffic flows smoothly. Frequent cold air attacks in China have been affected by cooling weather in many areas, leading to a significant increase in downstream replenishment demand and a continuous rise in liquefied natural gas prices. In terms of sea and gas, some receiving stations have raised prices.

Market forecast: In December, the overall focus of raw material cost prices will decline, the overall fuel market will decline, and the cost of polyacrylamide will decline. On the supply side, enterprises in the main production areas have normal production and sufficient market supply; On the demand side, downstream procurement and supply remain flat, market transactions remain stable, and actual transaction changes have not yet been significantly followed up. It is expected that weak consolidation will continue to dominate in the short term.