SunSirs: Demand and Costs have Fallen, and, China PA6 has been Shaken and Sorted Out after Falling in October

Recently, the domestic PA6 market has been experiencing weak fluctuations, and spot prices have been generally lowered. According to data monitoring from Business News Agency, as of October 31, the mixed benchmark price of PA6 in China was 14,575 RMB/ton, a decrease of -1.69% compared to the average price level at the beginning of the month.

After the market price of caprolactam fell in October, it stabilized. The raw material pure benzene has generally declined due to the impact of international crude oil fluctuations, resulting in loose support for the raw material. At the same time, a new device for caprolactam was put into operation and laid out in October, and the production line resumed work, resulting in an increase in supply. Downstream demand is average, resulting in a bearish trend for caprolactam. Overall, the cost support for PA6 has decreased.

In October, the load of PA6 production enterprises showed significant stability and slight changes, with an average operating rate of around 73% within the month. The market supply is almost flat compared to the previous period, and the on-site supply has increased. However, due to the low inventory level, there has been no significant increase in supplier pressure, and there is still support for PA6 spot goods.

In terms of demand: Downstream, the load of the weaving and spinning industries has fluctuated slightly and remained stable, with an average load position of around 66% and 81%, respectively. The willingness of terminal enterprises to stock up within the month is not strong, and their acceptance of high priced goods is not good, resulting in a lag in the circulation speed of some goods. Market trading is concentrated on low prices, and overall support for the demand side of PA6 chips is weakening.

In October, the PA6 market fluctuated and reorganized after a decline. The price of caprolactam has fallen, and the cost support for PA6 is weak. The demand side is cautious in picking up goods, and market trading tends towards the low end. The load of domestic polymerization plants is stable, the inventory position is low, and the polymerization plants have a strong willingness to raise prices. It is expected that the PA6 market may continue to consolidate in the short term.

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