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SunSirs: For Want of Positive Information, PA6 Declines Within A Narrow Range Early August

August 11 2020 08:42:35     SunSirs (Joyce)

Price Trend

According to the data from SunSirs Bulk Commodity Pricing Index, China PA6 market condition continues to fall early this month, and most grades, the spot has adjusted to be lower. Up to August 10, traders mainstream offer price for SINOHESIVE 2.75-2.85 is about 10,833.33 RMB/ton, which has a 0.91% decline from the beginning of the month.

Factor Analysis

PA6 upstream caprolactam slumps enormously early this month. Up to August 7, the factory average price is 9,416 RMB/ton, which declines 1.22%. Recently, the raw material pure benzene is boosted by many beneficial factors, climbing continually. However, the port inventory of pure benzene is piling up, restricting the market condition to recover. SunSirs caprolactam analyst supposes that despite the increasing price of pure benzene, the downstream demands still behave weakly, so the market condition of caprolactam is not satisfactory. It’s estimated that caprolactam will function in a weak level in a short time.

Early August PA6 condition goes on the depressing trend of late July. The upstream caprolactam goes down, so the support from cost side is weakening. PA6 consumption is faint, and overall, it lacks of positive information to stimulate, so the price fluctuates with decline. As for the operation from traders, they prefer to stabilize the price for shipment, but the downstream factories follow-up is general. The downstream is mainly holding a wait-and -see attitude, and purchases when the price is low and they really need. In addition, their strategy is inclined to small size.

Market Outlook

SunSirs analyst deems that in the first half of August, China PA6 condition is rebounding in a slight range, and some grades fluctuates to decline. The falling trend of caprolactam is apparent, and its sustain for cost side is weaker. The demands from upstream factories are weak, mainly for rigid buying. The transaction and consumption of PA6 is not strong, so the attitude of traders is not optimistic, who have the operation of sacrificing profits. It can be predicted that recent PA6 market may continue the weak trend.

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