SunSirs: Weak Costs and Demand, China PA6 Market is Declining

Recently, the domestic PA6 market has weakened, and spot prices have generally declined. According to data monitoring from SunSirs, as of September 25th, the mixed benchmark price of PA6 in China was 14,775 RMB/ton, a decrease of +4.79% compared to the average price level at the beginning of the month.

Recently, the market price of caprolactam has fallen from a high point. Upstream pure benzene was dragged down by the decline in crude oil, resulting in a weakening of the cost of caprolactam. At the same time, there are also signs of a decline in market trading, with the pace of spot digestion slowing down last week. It is expected that the price of caprolactam will continue to be weak in the short term. It is recommended to pay attention to changes in the raw material market.

In the previous cycle, the production enterprises operated horizontally in terms of load, with an average operating rate of around 75% in China. The market supply is relatively flat compared to the previous period, and due to the impact of inventory digestion in the previous period, the current pressure on domestic enterprises is not significant. However, there is abundant supply on the market, and the support of suppliers for spot goods has weakened.

In terms of demand: Downstream, the load of the weaving and spinning industries has basically decreased slightly, but has remained stable, with overall load positions of around 66% and 80%, respectively. The buyer's acceptance of the increased price has declined, and the actual transaction level has gradually weakened, affecting the circulation speed of some sources of goods. The wait-and-see atmosphere for terminal stocking has increased, and overall support for PA6 slicing demand has become loose.

Last week, the PA6 market declined. The price of caprolactam has fallen with that of pure benzene, and the cost support for PA6 has declined. The domestic polymerization plant has stable load and abundant supply. The atmosphere on the demand side is cautious, and the pre holiday stocking is basically completed. The mentality of merchants is affected, and they are flexible in taking orders. It is expected that the PA6 market may continue to be weak in the short term due to weak costs and weak demand.

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