SunSirs: Decrease Of Supply At The End Of The Month PA66 Weak Trend Is Now Eased (10.1-10.31)

1.Price Trend

According to the data of SunSirs, the domestic PA66 market continued to be weak in October, with weak prices. As of October 31, the average price of the mainstream offer of PA66 is about RMB 23050.00 yuan / ton, a decrease of 0.65% compared with the beginning of the month.

2.Cause analysis

In October, the domestic market of adipic acid in the upper reaches of PA66 continued the weak market in September, and the price fluctuated and fell. Weak supply and demand is a major dilemma of adipic acid in the past two months, as well as the loss of support on the cost side and negative spot market in many aspects. In October, the downstream demand did not improve, and the steady increase of supply led to the increase of social inventory pressure. Enterprises have the willingness to reduce price and inventory, so the price fell again. In terms of region, the markets of East China and South China have declined, ranging from RMB 200-500 yuan / ton. The market atmosphere is slightly bleak, dealers are mainly active in shipping, and the market maintains a weak and volatile pattern. At present, the downstream market has a heavy wait-and-see mentality, the transaction is slightly deadlocked, and there is room for businesses to save and transfer profits. In addition, the upstream cost side lost the key support, and pure benzene ended the booming market. In October, it turned down. According to the monitoring of the business agency, pure benzene fell as much as 6.12% in October, and adipic acid also fell. It is expected that adipic acid will be difficult to get out of the haze in the short term; at the beginning of this month, the spot supply of PA66 market is still abundant, the parking and maintenance in the middle and late ten days will be expanded, and the inventory pressure of manufacturers will be relieved. On the news side, the three major U.S. stock indexes received higher news at the end of the month, indirectly benefiting PA66 market. Downstream factories are still just in need of goods, and the demand has not improved and remains weak. The market is generally bullish, and the mentality of the operators is limited. But at the end of the month, the merchants began to try to adjust the prices, and the delivery and investment are mostly flexible. Although there is a moderation trend at the end of the month, the overall market of PA66 in October still shows a weak adjustment.

3.Future Market Forecast

SunSirs analysts think: in October, the domestic PA66 market was weak. The peak season of adipic acid in the upstream is not good, the trend is falling, and the support for PA66 cost surface is limited. At present, the spot supply has been reduced due to the impact of the decline in the operating rate, and the inventory of manufacturers has been reduced. There is no improvement in the enthusiasm of downstream stock up, and the strategy of just need to take the goods as the main strategy. The market is flat, and the industry is mainly in a wait-and-see attitude. PA66 shows signs of recovery in the near future, and it is expected that PA66 will be adjusted by shocks in the near future.

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