SunSirs: Rubber and Plastics: It is Difficult for Upstream and Downstream to Support PA66 While Low Price of PA66 Remains Temporarily Stable (November 1-30)

1. Price Trend

According to the data from the SunSirs' bulk commodity list, the domestic PA66 market in November continued to be weak and stable, and the low price was temporarily stable. Up to November 31, the average price of the mainstream offer of PA66 in viscous injection molding grade was around 23,100.00 RMB/ton, which was flat compared to the average price at the beginning of the month.

2. Market Analysis

Upstream: The upstream of PA66 this month, adipic acid continued the weak market in October and has been in a downward channel for three months, with a cumulative decline of 7.13% from September to November. From the current point of view, loose supply, weak demand and the lack of support on costs are the three major reasons for dragging down the adipic acid market. In November, the downstream demand for adipic acid became weaker, which is associated with the steady increase in supply, it causes the pressure on social inventory increasing. Although the company is dedicated in long-term destocking, the effect was not so significant that prices fell again and again.

In terms of region, the markets in East China and South China both declined, but the decline was narrowed compared to October. The market sentiment was slightly deserted, with dealers actively shipping mainly, and the market remained weak and volatile. At present, the wait-and-see attitude of the downstream market is heavier and transactions are slightly stalemate, and merchants have given away the profit to make order.

In addition, the upstream cost has lost key support. Although pure benzene ended the plunge in September-October, the current rebound effect is not satisfactory. The related products MDI is also not optimistic and its price remains weak. This is why the cost of adipic acid lost supports and has slumping prices. It is expected that adipic acid may be trapped in this dilemma in the short term. Earlier this month, the spot supply of the PA66 market was still abundant, and the terminal market was still just in need of goods. The weak mentality of the players has not changed, and most of the trading orders are flexible. The overall domestic market price of PA66 in November still showed a weak and stable adjustment.

3. Market Forecasting

SunSirs' analysts believe that the domestic PA66 market in November was weakly and steadily adjusted. The upstream adipic acid continued to weaken, but the decline was narrowed, and the cost support for PA66 was limited. The enthusiasm for downstream stockpiling has not improved, and the strategy of on-demand procurement is the main focus. The market is in light buying atmosphere, and the industry is still waiting and seeing, with limited operations. It is expected that PA66 will continue to run weakly and steadily in the near future.

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