SunSirs: Cost and Demand Pull, China PA6 Market Fluctuated in November

In November, the domestic PA6 market fluctuated and some spot prices were narrowly reduced. According to data monitoring from SunSirs, as of November 30th, the domestic benchmark price of PA6 mixture was 14,462.50 RMB/ton, a decrease of -0.43% from the average price level at the beginning of the month.

The market price of caprolactam increased in November. Although the price of raw material pure benzene has been affected by the decline in international crude oil, the cost support of caprolactam has weakened. However, the maintenance of production line equipment in the caprolactam industry is concentrated, leading to a reduction in market supply. Downstream procurement is on demand, and the demand side is relatively stable. In the future, the supply of caprolactam is showing a rebound trend, and it is expected that the price increase of caprolactam may narrow in the short term.

In November, there was a narrow adjustment in the load of PA6 production enterprises, with an average operating rate of over 74% in the interval. The market supply has remained almost unchanged compared to the previous period, and there is ample supply of goods on the market. The inventory level is still not high, and there is no significant increase in supplier pressure. The support for PA6 spot goods still exists.

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 in mid month is average, and their overall acceptance of high priced goods is not good. Trading is concentrated near maintaining production demand, with replenishment prices mostly centered around the low-end, and overall support for the demand side of PA6 slicing is average.

The PA6 market experienced a narrow decline in November. The price of caprolactam has increased, and the cost support for PA6 has increased. The load of domestic polymerization plants is almost horizontal, and the inventory position remains low, indicating a strong willingness of polymerization plants to raise prices. The demand side is cautious in purchasing goods, and market trading tends towards the low-end. It is expected that the PA6 market will continue to consolidate in the short term.

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