SunSirs: Rubber and Plastics: PA66’s Market Condition Has not Changed and Its Price Remains Stable (December 1-6)

1. Price Trend

According to the data from SunSirs, the domestic PA66 market price was stable in early December, and the market remained weak and stable. Up to December 6, 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 with the average price at the beginning of the month.

2. Market Analysis

In the beginning of this month, the domestic adipic acid continued weak sideways. Under the background of loose supply and weak demand, the lack of cost support even worsened the adipic acid market. At present, the weakness of adipic acid has lasted for three months. Last month, the downstream demand for adipic acid became weaker. In addition, the steady increase in supply led to increasing social inventory pressure and high corporate inventory. Unfortunately, the effect of destocking was not obvious, which cause the price to slump. Recently, the price in the East and South China is weakly sideways, and the decline has narrowed compared with October. The market has strong sentiment. Dealers actively let the profit go, and the market remained weak and volatile. At present, the wait-and-see attitude of the downstream market is heavier, and the transactions are confronted with some resistance. In addition, the raw material-end pure benzene port inventory this week has decreased compared with last week, and the domestic spot supply of pure benzene is tight. The domestic pure benzene market had a good atmosphere for negotiation, which led to a slight increase in prices. The high price of external disk supports the price of pure benzene. And pure benzene companies have raised their expectations. However, the small increase is not ideal, and the support for adipic acid is slightly insufficient. It is expected that adipic acid may be out of the haze in the short-term years ago. In the early December, the PA66 market has ample spot supply, and downstream factories have generally made inquiries, maintaining just-in-time replenishment and buying lightly. The weak mentality of the players has not changed, and most of the trading orders are flexible.

3. Market Analysis

SunSirs' analysts believe that the domestic PA66 market situation has been steadily sideways in early December. The upstream adipic acid continued to weaken and sideways in a narrow range, which did not support the cost of PA66. The enthusiasm for downstream stocking has not improved, and procuring on-demand strategy was adopted. The market is light buying, and the industry still sees the hollow state, with limited operations to wait and see. It is expected that the PA66 price may continue to run smoothly in the near future.

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