The PA market saw a slight increase in January

According to the Commodity Market Analysis System of SunSirs, as of January 7th, the price of OX method PA was 6,612.50 RMB/ton, a slight increase of 0.19% compared to the price of 6,600 RMB/ton on January 1st. PA equipment operated stably and supply of PA was stable; Plasticizer companies were operating at a high level, and there was active demand for PA procurement, which supported the demand for PA. With stocking up before the Spring Festival, the demand for PA briefly increased.

Supply side: Adequate supply of goods

80% of the PA equipment in Tongling, Anhui has started construction; The 100,000 ton PA plant of Xinyang Group was operating normally, and the PA equipment of Shandong Hongxin was starting up normally; Panjin Ruide Chemical's PA equipment was operating at 80% load, while Shijiazhuang Bailong Chemical's PA equipment was operating normally. In December, the operating load of domestic PA plants remained stable at a high level, with 70% of PA manufacturers operating at full capacity. The supply of PA from manufacturers was stable, and the supply was sufficient.

The cost of raw materials for OX in January was temporarily stable

According to the Commodity Market Analysis System of SunSirs, as of January 7th, the price of OX was 6,700 RMB/ton, which was temporarily stable compared to the price of OX on January 1st at 6,700 RMB/ton. In January, the price of OX method PA remained stable, and the cost of OX method PA stabilized. The downward pressure on OX method PA still existed. Industrial naphthalene prices were consolidating strongly, while the cost of naphthalene based PA was stabilizing. The overall cost support for PA raw materials still existed.

Demand side: The DOP market fluctuated and rose in January

According to the Commodity Market Analysis System of SunSirs, as of January 7th, the DOP price was 8,513.75 RMB/ton, a fluctuating increase of 3.49% compared to the DOP price of 8,226.25 RMB/ton on January 1st. The profit of plasticizer DOP was high, and plasticizer enterprises were actively operating. The operating rate of downstream plasticizer enterprises was high. After the New Year's Day holiday, they replenished their inventory, and in addition, manufacturers will replenish their inventory before the Spring Festival. The demand for PA had good support, and the inventory of PA manufacturers was low. The upward support for PA still existed.

Market outlook

According to the PA products data analyst of SunSirs, in terms of cost, the price of OX was stabilizing, the price of industrial naphthalene was consolidating strongly, the cost of PA was stabilizing, and the downward pressure on PA cost was weak; In terms of demand, DOP manufacturers had high operating loads, coupled with stocking up before the Spring Festival, which provided strong support for PA demand. Overall, with limited cost support and significant downstream demand support, it is expected that the PA market will experience strong consolidation in the future.

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