SunSirs: Strong Raw Materials in July, China PA6 Market Keeps Up

In July, the domestic PA6 market strengthened, with many spot prices rising. According to data monitoring from SunSirs, as of August 1st, the mixed benchmark price of PA6 in China was 14 000 RMB/ton, a decrease of +4.87% compared to the average price level at the beginning of the month.

The Caprolactam market price rose strongly last month. In terms of cost, due to the rise of crude oil, the price of pure benzene remained positive, and the support for Caprolactam continued to grow. The supply of Caprolactam is tight in the second half of the month, the downstream polymerization enterprises start steadily, and the procurement just needs support. It is expected that Caprolactam will continue to operate stably.

In July, the load of PA6 production enterprises remained generally stable, with an average operating rate of around 74% in China. In the second half of the month, market supply began to gradually decrease, inventory positions decreased, supplier support for spot goods increased, and factory pricing increased.

In terms of demand: Downstream, the load of the weaving and spinning industries has basically adjusted slightly within the month, and the overall load position is still stable. Stimulated by a decrease in supply and a strengthening of raw materials in the second half of the month, actual trading has improved. There is an atmosphere of speculation in the market, with buying up rather than falling. The overall atmosphere of stock preparation on the market has rebounded, and overall support for the demand side of PA6 chips is still acceptable.

The PA6 market strengthened in July. The load of domestic polymerization plants is stable, and the production is stable and abundant, but the supply of goods is gradually being digested. In terms of demand, it is acceptable, and downstream stocking enthusiasm has improved. The price of Caprolactam strengthened, and the support of PA6 cost side increased. It is expected that the PA6 market may continue to be strong in the short term.

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