Price trend
Recently, the domestic PA6 market has remained stable with minor fluctuations, and some spot prices have been slightly adjusted. According to data monitoring by Business Society, as of December 15th, the domestic benchmark price of PA6 mixture was 14375 yuan/ton, a decrease of -0.61% 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 been fluctuating recently. The increase in pure benzene prices this week has boosted the cost support for caprolactam. Downstream procurement expectations are expected to improve due to the impact of production expansion. However, some production line equipment maintenance in the early stage of the industry has returned, and market supply has increased, so the long short game on the market continues. It is expected that the price of caprolactam will shift from weak consolidation to strong consolidation in the short term.
In terms of supply:
This week, 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 68% and 81%, respectively. The willingness of terminal enterprises to stock up 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
This week, the PA6 market stabilized and saw a narrow rise. The price of caprolactam fluctuated slightly, while the cost support for PA6 was average. 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 the supply of goods in the future may increase due to new production facilities, and the PA6 market may continue to consolidate and operate in the short term.
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