SunSirs: Upstream Market is Negative, China PA6 Price is Weak

In the first ten days of December, the domestic PA6 market weakened and the price fell. According to the data monitoring of SunSirs, the average ex factory price of domestic PA6 was 13,500 RMB/ton on December 12, up or down by -3.11% compared with the price level at the beginning of the month.

In terms of raw materials: it can be seen from the figure below that caprolactam in China has been in a downward channel in the near future, and the market for raw material pure benzene has weakened due to the decline of crude oil, with insufficient support on the cost side. Domestic caprolactam stock is abundant, and the demand side lags behind. It is expected that the price trend of caprolactam will decline in the short term.

In terms of supply: the operating rate of domestic PA6 polymerization enterprises decreased by a narrow margin, and the overall load level was about 60%. Last week, the output was stable and the supply of goods was abundant. In addition, the production of new units in the early stage will also store pressure on the supply side.

Demand: In the downstream, the textile enterprises' load is average, the nylon filament starts to decline in a narrow range, and the stock of PA6 chips decreases. The market competition was strengthened, and the high-end offers were generally not smooth. The buyer just needs to stock up and buy cautiously, and the wait-and-see mentality is biased.

The PA6 market fell last week. The load of domestic polymerization plants has decreased by a narrow margin, and the supply is still sufficient. On the demand side, the demand is relatively weak, and the rigid demand support is weakened. The falling cost and the contradiction between supply and demand drag the market. Generally speaking, the market fundamentals are weak, and China PA6 market may continue its weak consolidation operation.

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