Price trend
Last week, there was a decline in the domestic PA6 market, and spot prices were generally reduced. According to data monitoring from Business Society, as of May 16th, the average factory price of PA6 in China was 13950 yuan/ton, a decrease of -0.18% compared to the average price level at the beginning of the month.
Cause analysis
In terms of raw materials:
It can be seen from the figure above that the market price of caprolactam fell slightly last week. The price of raw material pure benzene has been lowered, resulting in insufficient cost support. At present, caprolactam market supply is relatively stable, and supply and demand are relatively balanced. Downstream demand performance is insufficient, and procurement is more cautious, maintaining a wait-and-see attitude.
On the supply side:
Recently, the overall load of domestic PA6 production enterprises has remained relatively stable, operating in a narrow range of around 70%. The market supply is stable, there is an increase in inventory positions, and the supplier’s support for spot goods is average. The factory price pricing is narrow and loose.
In terms of demand: downstream, the weaving and spinning industries have a moderate load. The actual trading is generally concentrated in low-end spot goods. The overall atmosphere of stock preparation on the site is cautious, with buyers resisting high priced sources, and the overall demand for PA6 chips is average.
Future Market Forecast
In mid May, the PA6 market experienced a slight decline. The load of domestic polymerization plants is stable, and the supply remains sufficient. In terms of demand, it is average, and stocking tends towards low-priced sources. The price of caprolactam fell back, and the narrow range of PA6 cost end support weakened. Market long short game, it is expected that the PA6 market may be dominated by weak consolidation and operation in the short term.
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