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SunSirs: Weak Demand & Accumulated Inventory, China PA6 Decline has continued for more than a Month

April 14 2021 11:17:53     SunSirs (Selena)

According to the data of SunSirs, in early April, the domestic PA6 market generally fell at a high level, and the spot price mostly dropped. As of April 12, the mainstream offer price of sample enterprises for CNMC 2.75-2.85 was about 14,800 RMB/ ton, a decrease of 1.33% compared with the average price at the beginning of the month, and a rise of 42.31% compared with the same period last year.

In terms of upstream caprolactam, in the first half of last month, the tightening of external petrochemical industrial chain supply gradually exhausted the positive effect on caprolactam, and the price began to fall after reaching the high point of the range in the middle of the month. In the first ten days of this month, the domestic spot price of caprolactam continued to callback. According to the data of SunSirs, the domestic average price of caprolactam was 13,100 RMB/ ton before publishing.

The price of caprolactam continued to fall, the cost support of PA6 was weakened, and the market continued to decline. On the other hand, the current domestic supply of PA6 is strong, the demand is weak, the inventory is increased, and the spot price is reduced, which weakens the profit of polymerization plant. Recently, the profit situation of domestic polymerization plants is not good, and most manufacturers have negative profit situation, which leads to the passive reduction of negative profit of some units. At present, the operating rate of the industry has dropped to 70%, and it is likely to continue to decline.

SunSirs analysts believe: in early April, the upstream caprolactam of PA6 continued the previous correction and continued to go down, and the cost support of PA6 was weakened. At present, the purchase intention of PA6 downstream plants is not strong, the wait-and-see atmosphere is rising, and the overall demand is weak. Businesses actively let profits go, while the industry passively reduces its burden. Overall, the current fundamentals of PA6 are mainly negative, and it is expected that the price of PA6 will continue to decline in China.

 

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