SunSirs: Raw Materials Fall & Demand was sluggish, China PA66 Market Weakenedin December 2022

The domestic PA66 market declined in December. According to the data monitoring of SunSirs, the average ex factory price of domestic PA66 was 21,750 RMB/ton on December 30, up or down by -6.45% from the beginning of the month.

The market of PA66 fell this month, and the spot price dropped significantly. In terms of supply, the overall load of PA66 industry in China in December was about 65%, which was stable. During the month, the enterprise operation was biased towards de stocking, and the inventory pressure eased in the second half of the month, but the pattern of abundant market supply remained unchanged. On the upstream side, the tight supply of hexamethylene diamine in the month gradually improved. Adiponitrile was pulled by the cost side at the beginning of the month and ran in a stalemate. Later, due to long-term low load operation, the manufacturer's effect of de stocking appeared. The supplier's favorable support for adipic acid prices rose. In December, the cost side of PA66 gradually warmed up. The weak demand situation is hard to change. In this month, the terminal enterprises just need to follow up on the purchase of goods, and the enthusiasm for downstream goods preparation is not good. The impact of the pre holiday stock surge has been diluted. Buyers generally have strong resistance to high price goods, and are also relatively cautious about price reduction. The merchants have poor delivery fluency.

In December, the spot price of PA66 continued to decline. The raw material market has warmed up, and the support for the cost side of PA66 has gradually improved. The load of PA66 enterprises stabilized, the enterprises reduced their prices and shipped goods, and the overall inventory position declined. The demand side just needs to follow up the goods slowly, and it is expected that PA66 will continue to operate in a weak way in the short term.

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