SunSirs: Poor Market in December 2023, resulting in a Negative Decline in PA66 Prices

The domestic PA66 market showed a negative trend in December. According to data monitoring by SunSirs, the domestic PA66 mixed benchmark price was 20,533.33 RMB/ton on December 31, with a price increase or decrease of -3.75% compared to the beginning of the month.

The weakness of PA66 continued within the month, with spot prices consolidating after falling. The spot prices of various brands have all been lowered, and the production line operating rate has remained stable at around 63%. The supply of goods in the interval market is tight, and the inventory position is average. Enterprises are cautious in pricing operations, and the support from suppliers is still sufficient. Downstream textile, electrical, and modification enterprises mainly maintain production by purchasing goods, and at the end of the year, on-site stocking revolves around weak and rigid demand, with weak support for spot goods on the demand side. On the upstream side, hexamethylene diamine is supported by price hikes from international large factories, but there is an expectation of easing the tight supply situation in the future, and the price is generally entering a stagnant and downward pressure pattern. Early bearish guidance in the adipic acid market, followed by consolidation after a price drop. At present, there is a rapid recovery, and the support for PA66 is weak first and then repaired. Overall, the support from the cost side for the PA66 market is average. At present, the market supply and demand are not strong, and the overall price of PA66 is weak.

The spot price of PA66 fell weakly in December. The fluctuation of raw material prices has provided moderate support for the cost of PA66. PA66 enterprise has a low level of horizontal load, and the inventory position is still acceptable. The demand side still relies mainly on maintaining production, and it is expected that the PA66 market will gradually enter the pre holiday market in January, continuing the weak supply-demand pattern, resulting in weak prices and consolidation.

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