Price trend
In early December, the domestic PA6 market was weak and some spot prices were adjusted. According to data monitoring by Business Society, as of December 8th, the domestic benchmark price of PA6 mixture was 14350 yuan/ton, a decrease of -0.78% from the average price level at the beginning of the month.
Cause analysis
In terms of raw materials:
From the above chart, it can be seen that the market price of caprolactam has recently fallen. In early December, the price of raw material pure benzene was affected by the decline in international crude oil and followed suit, while the cost support for caprolactam weakened. In addition, the maintenance of some production line devices in the industry has returned, leading to an increase in market supply and an increase in inventory levels. Downstream procurement on demand, with average demand side. It is expected that in the short term, the price of caprolactam may weaken and consolidate.
In terms of supply:
In early December, there was a narrow adjustment in the load of PA6 production enterprises, with an average operating rate of around 75% in the interval. The market supply has remained almost unchanged compared to the previous period, and there is ample supply of goods on the market. The inventory level is still not high, and there is no significant increase in supplier pressure, which still provides support for PA6 spot goods.
In terms of demand: Downstream, the load of the weaving and spinning industries has fluctuated slightly and remained stable, with an average load position of around 69% and 81%, respectively. The willingness of terminal enterprises to stock up in mid month is average, and their overall acceptance of high priced goods is not good. Trading is concentrated near maintaining production demand, with replenishment prices mostly centered around the low-end, and overall support for the demand side of PA6 slicing is average.
Future Market Forecast
In early December, the PA6 market experienced a narrow decline. The price of caprolactam has fallen, and the cost support for PA6 has weakened. The load of domestic polymerization plants is almost horizontal, and the inventory position remains low. The demand side is cautious in purchasing goods, and market trading tends towards the low-end. It is expected that future prices may be affected by new production capacity, and the PA6 market may continue to operate weakly in the short term.
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