SunSirs: The Contradiction Between Supply and Demand Does Not Decrease, But Increases. The Peak Season of PA66 in September Is Not Prosperous (9.1-9.30)

1.Price Trend

According to the data of SunSirs list, the domestic PA66 market continued to be weak in September, with prices weakening. As of September 30, the average price of viscous injection grade mainstream offer in PA66 was about RMB 23200.00 yuan/ton, which was 4.72% lower than that at the beginning of the month.

2.Cause analysis

PA66 upstream adipic acid Market Monthly market climate is slightly rigid, the performance of the market is weak, trading in general. In September, domestic adipic acid continued its trend in August, with price fluctuation adjusted and market stalemate dominated. The market atmosphere is slightly cold, the mindset of trade businessmen is cautious, and the delivery orders are mainly small. Upstream pure benzene in September domestic pure benzene spot tight, coupled with the recent violent crude oil shocks, stimulate the market, spot rally is strong. However, from the results, the promotion of adipic acid is limited. The supply of the market is stable, which partly reflects the abundant and excessive supply. And many distributors said that the inventory pressure is high, the plant start-up rate is high, the market inventory and manufacturer inventory have risen, the market price quotation and the stock price difference of the deal are still in stock, most regions maintain a stable market. On the demand side, downstream gas is insufficient. The traditional "Golden Nine" market has not arrived as expected this year. There are signs of improvement in downstream demand, but the wait-and-see mentality is still heavy. From the market performance, adipic acid market has entered a stage bottom, the bottom-finding process has basically come to an end. Late in the month, the adipic acid market has rebounded slightly and the horizontal market adjustment is the main one. In September, the PA66 market has abundant spot supply, and the contradiction between supply and demand still exists under this year's "gold nine silver ten". This month's news points to expectations of further increases in supply, exacerbating the already profound contradiction between supply and demand. Downstream factories just need to take delivery, demand has not improved and continued to weaken. Market buy gas is insufficient, business people have a heavy wait-and-see mentality, and most of the transactions are flexible. Businessmen have reduced their public quotations and made it difficult to deal with them in detail. Domestic PA66 remained weak and persistent in September.

3.Future Market Forecast

SunSirs analysts believe that the domestic PA66 market was weaker in September. Upstream adipic acid shock adjustment has limited cost support for PA66. At present, the supply is abundant, and the contradiction between supply and demand is still the main contradiction in the domestic PA66 market. The enthusiasm of downstream stock-up has not been improved, and the strategy of picking up goods is just needed. The market is short of gas, the traders are passive and wait-and-see, and the open quotation of the merchants is reduced. It is expected that PA66 will continue its disadvantaged consolidation in the near future.

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