SunSirs: Demand Shrank, PA6 Market Fell

Price trend

According to the monitoring data of SunSirs, the domestic market of PA6 fell this week, and the spot price of various models was reduced. As of July 1, the mainstream quotation price of PA6 with moderate viscosity of 2.75-2.85 by sample enterprises was around 15,600 RMB/ton, which was -2.90% compared with the average price at the beginning of the week.

Analysis review

Industrial chain: Upstream, CPL prices fell this week. The raw material pure benzene continued to decline, crude oil softened, and external news supported weak. The domestic pure benzene port inventory continued to increase, and the supply increased. However, the profit of downstream products was lost, some devices had been shut down due to economic considerations, and the demand had weakened. It is expected that the CPL market will continue to decline in the short term.

The upstream CPL market trend fell, and the cost-side support of PA6 weakened this week. The operating rate of domestic PA6 polymerization plants had a limited change, and the overall stability was below 70%. This week, it was running sideways. In terms of news, affected by the previous interest rate hike by the Federal Reserve, the international crude oil price fell, and the supporting role of both the near and far cost sides of PA6 weakened. The supply side of PA6 was abundant, and the profits of aggregation enterprises were under pressure. The load of downstream enterprises fell within a narrow range, and as the market entered the off-season, the demand slowed down. Buyers were cautious in purchasing goods, and mainly purchased small orders to maintain production, and the trading situation was not good.

Market outlook

The analyst of SunSirs believes that the spot price of PA6 fell this week, the CPL fell, and the cost-side support of PA6 weakened. Downstream enterprises were mainly taking small orders to maintain production. There was resistance to high-priced supply in the market, and trading was shrinking. It is expected that the market trend of PA6 may be weak in the short term.

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