SunSirs: China PA6 Market Strengthened before the Spring Festival when Raw Materials Rose

In the middle of January, the domestic PA6 market trend was strong, and the spot price rose. According to the data monitoring of SunSirs, the average ex-factory price of domestic PA6 was 13,700 RMB/ton on January 17, with a rise or fall of +2.75% 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 the market price of caprolactam has risen recently. The price of raw material pure benzene was increased, and the cost support of caprolactam was strengthened. The operation rate at the supply end has increased, the demand for terminal replenishment has increased, and the on-site delivery is in good direction. It is expected that caprolactam prices will rise steadily in the short term.

Supply: In mid-January, the operating rate of domestic PA6 polymerization enterprises increased in a narrow range, and the overall load level remained at about 68%. In the past week, the output rose steadily on a month-on-month basis, and the supply of goods was relatively abundant.

Demand: downstream, the load of the weaving industry in the early stage is low, and the spinning enterprises have also entered the period of holiday and load reduction. The overall demand of terminal enterprises for PA6 chips has weakened, the spot competition on the market is strong, the benefits of stock preparation before the holiday are gradually exhausted, and the pre-sale transaction after the holiday is improving. The buyer's wait-and-see attitude is gradually strong, and the acceptance of high-priced goods is general.

The PA6 market rose in mid-January. The load of domestic polymerization plants has increased steadily, and the supply has maintained an adequate level. The demand side is affected by the holiday, and the support for just needs is weakened. The cost of PA6 was supported by the rise of caprolactam. The wait-and-see sentiment in the market rose, and the real order transactions began to decrease. It is expected that the PA6 market will be supported by the cost side in the short term.

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