SunSirs: Supply Remains Tight, China PA66 Remains High

According to the data of SunSirs, the domestic PA66 market was mainly volatile in December, 2020, with slight adjustment of various types of products. As of January 1, 2021, the average offer price of PA66 medium viscosity injection molding sample enterprises was about 29,400 RMB/ ton, a decrease of 1.34% compared with the average price at the beginning of the month.

PA66 upstream adipic acid, according to the data of SunSirs, the domestic adipic acid market fluctuated downward in December, with a price drop of 2.90%. In terms of trading, many regions are in the state of exchanging price for quantity on site. And the majority of dealers offer down, so that more operations. In terms of market supply, the factory's operating rate remained about 80% in December, the supply of goods in the market was relatively sufficient, and the factory's inventory increased. It can't be ruled out that in the later period, due to the overstock of inventory, the company continued to make profits to clear the inventory. In the later stage, the rising market of adipic acid is basically near the end, and it is still high volatility at present. It is expected that adipic acid price will maintain high level in the near future, or slightly loose.

Adipic acid generally supports the cost of PA66. In terms of supply, the operation rate of Zhejiang Huafeng increased in December, but the improvement of the overall operation rate of domestic production line is limited, and the factory has no pressure to accumulate storage, so the market supporting mentality is still strong. The situation of spot shortage in the domestic spot market is also limited. In general, the supply of goods is still dominated by old customers in supply contracts. The supply in the market remains tight, and there is still a shortage of goods. In the early stage, BASF, DuPont, aoshengde and other major international companies frequently issued price adjustment notices, and raised the price of PA66. The replenishment operation of downstream plants was biased towards rigid demand, the high price of PA66 also increased the pressure on downstream costs, and the operation was mainly volatile in December, 2020.

SunSirs analysts believe: PA66 domestic market trend in December was in shock, the price fell slightly. The market of upstream products was generally stable. The cost support for PA66 was acceptable. However, the spot market was still tight, and the terminals follow up passively. At the beginning of this month, new goods were cautiously low, resulting in a certain decline. However, the current raw material supply is tightening, and PA66 cost pressure is high. It is expected that China PA66 market will remain high in the short term.

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