Price trend

Last week, the domestic PA6 market weakened in a narrow range, and spot prices were generally reduced. According to data monitoring from Business Society, as of May 22, the average factory price of PA6 in China was 13800 yuan/ton, a decrease of -1.25% compared to the average price level at the beginning of the month.

Cause analysis

In terms of raw materials:

From the above chart, it can be seen that there was a slight decline last week. The price of raw material pure benzene has decreased, weakening cost support. At present, the supply and demand of caprolactam market is balanced, and the downstream demand is weak. Most of the products are purchased at low prices, and they are mainly cautious. It is expected that caprolactam market price will be weak in the short term, which will be dominated by consolidation operation.

On the supply side:

Recently, the overall load of domestic PA6 production enterprises has remained relatively stable, operating in a narrow range of around 70%. The market supply is stable, the inventory position continues to rise, and the supplier’s support for spot goods is average. The factory price pricing is narrow and loose.

In terms of demand: downstream, the weaving and spinning industries have a moderate load. The actual trading is generally concentrated in low-end spot goods. The overall atmosphere of stock preparation on the site is cautious, with buyers resisting high priced sources, and the overall demand for PA6 chips is average.

Future Market Forecast

Last week, there was a decline in the PA6 market. The load of domestic polymerization plants is stable, and the supply remains sufficient. In terms of demand, it is average, and stocking tends towards low-priced sources. The price of caprolactam fell back, and the narrow range of PA6 cost end support weakened. It is expected that the PA6 market may be dominated by weak consolidation and operation in the short term.