Price trend

The domestic market price of PA by OX method continued to decline. As of December 5, the quotation of PA by OX method was 8,400 RMB/ton, with a monthly decline of 10.99%. The supply of PA was sufficient, the demand did not improve, and the market price kept falling.

Analysis review

The market of PA declined, and the main influencing factors were as follows:

Supply side:  spot supply of PA was sufficien

The supply of PA was sufficient. The domestic PA plants were operating stably. The PA by OX method in Tongling, Anhui began to ship normally. The 100,000 ton PA unit of Xinyang Group operated stably, and Yamato Hongxin PA operated normally. The domestic PA capacity was seriously surplus. As of the 5th, the domestic PA operating rate remained more than 60%, the supply of goods was not good, and the market trend continued to decline.

Cost side: the price of OX was lower, and the cost support was weakened

The price trend of OX in China declined. As of December 4, the price of OX was 8,500 RMB/ton, and the monthly price fell 8.60%. The OX unit in the plant was restarted after maintenance. According to the manufacturer, the supply of OX as the reaction raw material increased. Affected by the decline of mixed xylene market, the market for OX decreased, the cost support weakened, and the PA market declined.

Demand side: plasticizer market was downturn, demand was poor

The DOP market price in the downstream of PA decreased slightly. As of December 5, the domestic DOP price was 9,960 RMB/ton, and the domestic DOP enterprises started at a low level of about 50%. As for PA, the purchases mainly on demand, the mainstream DOP price was 9,900-10,000 RMB/ton. The output of plastic products decreased, the demand for plasticizers decreased, and the plasticizer industry still had a downward trend. Poor downstream demand was the negative impact of the PA market, which continued to decline.

Market outlook

In the short term, the price of OX is weak, the downstream plasticizer industry is sluggish, and the supply of PA is sufficient. With the addition of negative factors, the market price of PA is expected to decline slightly in the later period.

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