SunSirs: Weak Demand, China PA6 Market is Poor

In December, the weakness of the domestic PA6 market continued, and the spot price fell by a narrow margin. According to the data monitoring of SunSirs, the average ex factory price of domestic PA6 was 13,433.33 RMB/ton on December 16, up or down by -3.59% compared with the price level at the beginning of the month.

In terms of raw materials: from the figure below, it can be seen that caprolactam in China has fallen sideways in the recent past. In the early stage, the market for raw material pure benzene has weakened due to the fluctuation of crude oil price, and the cost side is not supported enough. Domestic caprolactam stock is abundant, and the demand side lags behind. The price stabilized after falling, and caprolactam price trend is expected to continue the weak finishing market in the short term.

In terms of supply: the operating rate of domestic PA6 polymerization enterprises rose by a narrow margin, and the overall load level was below 65%. The output is stable and the supply of goods is abundant this week

Demand: In the downstream, the textile enterprises' load is average, the nylon filament starts to decline by a narrow margin, and the demand for PA6 chips is insufficient. The spot competition on the market is strong, and the high price offer is generally not smooth. Most buyers buy goods at low prices, and just need to maintain production. The purchasing operation is cautious and the wait-and-see mentality is biased.

This week, PA6 market was mainly weak. The load of domestic polymerization plants increased by a narrow margin, and the supply remained at an adequate level. On the demand side, it remained weak and the rigid demand was insufficient. In addition, after the cost side fell, the market was dragged down by multiple negative factors. Generally speaking, China PA6 market fundamentals are weak, and the market may continue its weak consolidation operation.

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