SunSirs: Plastics, PA66 Continues Sideways in December (December 1 -31)

1. Price Trend

According to the data from SunSirs, the domestic PA66 market in December continued to be stable and prices were relatively low. Up to December 31, the average price of mainstream PA66 grades for PA66 injection molding grades was around 23,087.50 RMB/ ton, a drop of 0.05% from the beginning of the month.

2. Market Analysis

Upstream: This month, the adipic acid market continued to stand still. Prices in most regions changed little, and some of them rose. Basically, loose supply and weak demand are still the main factors that plague adipic acid out of a weak situation. It did not bring a rebound to downstream adipic acid, but instead aggravated the dilemma of corporate profit contraction. At present, there is still no improvement in downstream demand for adipic acid.

Inventory: In addition, the pressure on social inventory has not eased. The market has no incentive to reverse upwards. Corporate inventory and market inventory remain at a high level. This is inseparable from the current low demand and low procurement.

Market: This is also an important reason why the price of adipic acid has not rebounded. The market sentiment was slightly deserted, with dealers actively giving profits to shipments, and the market remained weak and volatile. At present, the downstream market is still generally on the wait-and-see attitude, and transactions are slightly deadlocked.

Upstream Cost: Meanwhile, from the perspective of upstream costs, pure benzene has ended the oscillating downward pattern. However, up to December 27, the rebound rate of this month has exceeded 8%, but the transmission effect of costs has a certain lag. It has not given the adipic acid market too much bullish news.

But as the price of pure benzene goes up, the profits of adipic acid manufacturers are compressed. At the same time, they are trapped by the weak demand, and the price has not improved, which confirms the extremely weak market situation. The PA66 price this month is still dominated by sideways.

The spot supply in the market is still abundant, and the end market still just needs to get goods. There were fewer inquiries from downstream factories and the atmosphere was quiet. The players waited and saw, and their mentality remained unchanged. Most of the trading orders were flexible.

3. Market Forecasting

SunSirs analysts believe that the domestic PA66 market in December was sideways. Weak upstream adipic acid demand continues. Although the decline has narrowed, the trend is still stable and weak, with limited support for the cost of PA66. The enthusiasm for downstream stockpiling has not improved, and the strategy of just getting goods is the main focus. The atmosphere in the market is quiet, and the wait-and-see mentality of the operators is heavy, with limited operations. It is expected that the recent PA66 disk may continue to run sideways.

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