SunSirs: Complex Situation of Resumption And Logistics of PA66 Quotation (Feb.17-25)　

The domestic PA66 market in the second half of February moved steadily and adjusted in a narrow range. As of Friday (February 25), the average price of mainstream offers for injection molding grade in PA66 is around 2,2500.00 RMB / ton, down 1.10% from the average price at the end of the second week of February.

Recently, the upstream market of PA66 adipate has been stable, and the domestic price has not changed much. Dealers still do not enter the market much, and many dealers are subject to transportation difficulties. Inventory is difficult to digest, and the resumption of work in many places is delayed. At present, the factory's operating rate remains stable, slightly increase compared with last week. And the pressure of manufacturers' inventory is on the rise. 

Dealers return to work is not ideal, especially for small and medium-sized traders. The market shows that there is no market price. The price is much the same as last week. Many dealers temporarily do not quote, but some of them also slightly loose prices. Large factory resume work more, but the rate of operation is still not to the pre-holiday level. The majority of Dealers inventory is pre-holiday reserve. In the early stage of this week, dealers still reasonably purchase. Most of the only buy without selling PA66. Therefore, social inventory has a downward trend compared with manufacturers inventory. It is expected that as more dealers come back to work in a large scale, the market demand for adipic acid is expected to recover in stages. Meanwhile, the price is expected to rebound, but the strength of the increase remains to be further observed. This week the domestic PA66 market is still relatively quiet, the market face narrow range.

On the supply side, logistical headwinds remain high, with few spot trades due to the impact of the shutdown. The improvement of the downstream factories' operating rate is very limited, and there is still no news about the resumption of work in Wuhan, where the automobile enterprises' production is relatively concentrated. The downstream demand has been reduced passively, and PA66 has maintained a similar price without market. Trading atmosphere is on the floor, with less trading news.

Market forecasting aspect, SunSirs analysts think that the second half of February domestic PA66 market prices has stable but small move. The upstream adipic acid producers and distributors did not see improvement when they returned to work. The price was stable, and the support for PA66 cost was limited. 

The situation of the downstream factories to resume work is complicated, with no stock or less stock. Meanwhile, the improvement of demand is very limited. Market atmosphere is cold and cheerless. The PA66 has a high price tag with small operating space. It is expected that if PA66 is to be active in the near future, it will need to wait at least until the domestic resumption of work and logistics conditions improve.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.