SunSirs: Tight Supply & High Demand, China PA66 was Strong in October

According to the data from SunSirs, China domestic PA66 market was strong in October, and the rise rate of various models of products was relatively large. As of November 1, the average offer price of PA66 medium viscosity injection molding class sample enterprises was about 26,500 RMB/ ton, an increase of 9.69% compared with the average price level at the beginning of the month.

On the upstream side of PA66, according to the data of SunSirs, the domestic adipic acid market rose in October, and the adipic acid in East China rose 5.14% in the whole month. The main reason is the surge of upstream costs, the continuous rise of pure benzene price, and the improvement of downstream market. At present, the price range of adipic acid is 6,800-7,200 RMB/ ton. In terms of supply, the operating rate of adipic acid manufacturers remained stable at over 80% in October. The market supply of adipic acid was relatively sufficient, and manufacturers' inventory pressure was great. In terms of adiponitrile and hexanediamine, as the main source of imports, and the rise of external market, the pressure of cost side increased. Currently, the upstream three materials are generally favorable to the downstream PA66.

The support of adipic acid on the cost side of PA66 is fair, and the market of PA66 in October continues to be positive. In October, BASF, DuPont, Randy and other major international companies announced direct price increases. At present, the consumption of PA66 is at the level of traditional peak season, and the purchase and sales volume at the end of the month has increased significantly, resulting in the recent increase of transaction focus of PA66 market. Tight supply pattern into the traditional peak season, the increase will naturally further expand; China PA66 is expected to continue the strong trend.

SunSirs analysts believe: as traditional peak season in October, China domestic PA66 market trend was strong. The price of upstream products in last month was positive, and the support of PA66 cost was acceptable. Downstream factory procurement followed-up on demand, traditional peak season consumption supported spot price. Tight supply and large consumption in the market are the key factors for the sharp rise of PA66 in October. With the support of the external market, it is expected that China PA66 market will continue to be stronger in the short term.

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