The cost side weakened and fell, followed by the price of PA6

1、 Price trend:

According to the data of the business club’s bulk list, the domestic PA6 market weakened in the first half of July, and the interest of most brands was reduced. As of July 16, the mainstream offer price of 2.75-2.85 from traders was about 11433.33 yuan / ton, a decrease of 6.28% compared with the average price at the beginning of the month.

2、 Analysis of influencing factors:

PA6 upstream caprolactam this month before a change in the trend, the current overall market down. According to the data from the bulk list of business associations, the average ex factory price of caprolactam on July 6 was 10333 yuan / ton, and that on July 10 was 9933 yuan / ton. At present, the mainstream average price is about 9700 yuan / ton, which is 6.73% lower than the average price level at the beginning of the month. Crude oil has strong support for pure benzene in June, while caprolactam is supported at the bottom of the market. Near the end of June, the port inventory of pure benzene reached a high level, and the pick-up speed began to slow down. As a result, inventory pressure was difficult to release, and the inventory of Shandong local refining enterprises increased, and caprolactam weakened at the end of the month. In recent years, the price of raw materials continued to decline, the cost side support became worse, and the downward trend of caprolactam was still in. In addition, sufficient supply, poor downstream demand, the overall market is weak. Caprolactam prices are expected to continue to fall in the future.

In the first half of July, PA6 market was generally affected by the negative effect of upstream caprolactam, and the market price closely followed the decline. At the beginning of the month, the highest point was 12200.00 yuan / ton. Since then, the merchants have been actively shipping and offered to reduce their positions. However, in recent years, the follow-up improvement of downstream factories’ orders is limited, mainly on bargain hunting, and the strategy is biased towards rigid demand procurement. Weak demand and inventory, business bearish aftermarket, market mentality is not strong, general trading atmosphere.

3、 Future forecast:

Business agency analysts believe: in the first half of July, the domestic PA6 market fell, and the spot price of each brand was dominated by profit margin. The supply of caprolactam in the upstream recovered and the disk fell down, which weakened the support for the cost side of PA6. The demand of downstream slicing plants is weak, and the strategy of bargain hunting is the main strategy. The improvement of PA6 trading volume is limited, and businesses are generally short of the future market and sell profits and reduce positions. It is expected that PA6 market will continue the weak trend in the near future.