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SunSirs: Downstream Inventory is still Sufficient, China PA6 Trading Deadlock

August 28 2020 10:52:50     SunSirs (Selena)

According to the data of SunSirs, the domestic PA6 market was adjusted in a narrow range in the third week of August, while the spot price adjustment of most brands was relatively small. As of August 23, the mainstream offer price of 2.75-2.85 from traders was about 10,900.00 RMB/ ton, which was 0.62% higher than the average price level on Monday, August 11, and 0.30% lower than the average price level at the beginning of the month.

The price of caprolactam upstream of PA6 increased slightly in the third week of August. The average ex-factory price of caprolactam on August 17 was 9,416 RMB/ ton, and that on August 23 was 9,450 RMB/ ton, with a price increase of 0.35%. At present, the operating rate of caprolactam enterprises is 79%. In terms of pure benzene in the upstream, the decline was obvious in the north, and the restart of downstream maintenance equipment was delayed, which caused pressure on the supply and demand side of the north. The listed price of pure benzene in North China of Sinopec was reduced by 100 RMB/ ton, while no adjustment was made in other regions. The market is waiting for Sinopec's price guidance. The cost support of pure benzene p-caprolactam is reduced, and the downstream demand is slightly improved. It is expected that the price of caprolactam will be low in the short term, and the finishing operation will be dominated.

The price of PA6 in the third week of August remained normal. The upstream caprolactam stabilized, the operating rate was high, and the cost support was expected to weaken, which was negative for the PA6 spot market. As for the consumption of PA6 chips, due to the pre payment consumption of traders and downstream factories for the coming peak season, the current trading volume of PA6 is weakening and the market atmosphere is mainly stalemate. In addition, the downstream nylon operating rate has decreased, generally speaking, the negative is greater than the good, and the price fluctuates slightly. In terms of business operation, they prefer to ship at a stable price, and the actual orders are more profitable. In order to improve the market trading, it is necessary to further observe the downstream inventory consumption.

Market Forecast:

SunSirs analysts believe: in the third week of August, domestic PA6 market narrowly recovered, and spot prices of various brands were adjusted. The upstream caprolactam has a strong price, but it has a general support for the cost end of PA6. Downstream factory inventory is more sufficient, inquiry intention is not strong, weak demand, PA6 trading volume into a deadlock. Business mentality is not strong, and it is expected that China PA6 market will continue to fluctuate in a narrow range in the near future.


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