SunSirs: Weak Demand, China PA6 Price Increase blocked

Recently, the domestic PA6 market has been plagued by bullish and bearish market conditions, and the rise of spot prices has been hindered. According to data monitoring from SunSirs, as of July 21, the average factory price of PA6 in China was 13,425 RMB/ton, a decrease of +0.94% compared to the average price level at the beginning of the month.

The market price of Caprolactam strengthened last week. In terms of cost, the price of pure benzene remained positive, with strong support for Caprolactam. The supply of Caprolactam increased slightly and the market supply was abundant. Downstream polymerization enterprises generally purchase Caprolactam, and it is expected that caprolactam will run stably.

Last week, the load of PA6 production enterprises increased, and the overall operating rate in China was around 76%, indicating stable market supply. The inventory position has risen, and the supplier's support for spot goods is average, putting pressure on factory pricing.

In terms of demand: Downstream, the load of the weaving and spinning industries is basically the same as last week, and the overall load position is still acceptable. However, actual trading is generally concentrated in low-end spot goods, and the overall atmosphere of stock preparation on the market is bargain hunting. The situation of new orders is weak, and buyers have poor acceptance of high priced goods. Market competition is strengthening, and overall support for the demand side of PA6 chips is average.

Last week, the increase in the PA6 market gradually narrowed. The load of domestic polymerization plants has increased, and the supply has remained sufficient. In terms of demand, it is average, and stocking tends towards low-priced sources. The price of Caprolactam is stronger, and the support of PA6 cost end is smoothed by the weakness of demand end. It is expected that the PA6 market may come under pressure and stagnate in the short term.

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