PA66 price adjustment in July

Price trend

According to the data of the business club’s bulk list, the domestic PA66 market was stable in July, and the range of rise and fall of various models of products was relatively narrow. As of July 31, the average price of PA66 medium viscosity injection molding mainstream offer was about 18800.00 yuan / ton, a decrease of 0.53% compared with the average price level at the beginning of the month.

PA66 upstream adipic acid prices in July continued the trend of last month, the market is not surprising, spot prices for the whole month narrow adjustment. Adipic acid prices fell slightly in July, but fell only 1.78% in the whole month, according to business agency data. The price of dealers fluctuated between 100-200 yuan / ton, and the mainstream quotation of adipic acid in East China was generally 6500-6800 yuan / ton as of July 31. On the cost side, crude oil continued to consolidate at the US $40 level, which gradually weakened the downstream impact. Pure benzene, the direct upstream product of adipic acid, rebounded significantly in July, but it was mainly concentrated at the end of the month. At present, the downstream adipic acid did not rise due to the hysteresis of cost transmission. And at present, pure benzene is still at a relatively low level, which does not bring fundamental benefits to adipic acid, but the rising cost has squeezed the downstream profit space. In terms of supply and demand, the operating rate of enterprises remained high in July, basically above 80%. The supply of goods is sufficient, and the pressure of manufacturers’ inventory is high. And the shipping strength is not good. At present, most of the dealers have returned to normal picking up goods, but the downstream demand is affected by the weakening domestic demand and the suppression of overseas epidemic situation. The dealers are still relatively cautious in taking delivery of goods, and some dealers purchase according to the order, rather than inventory operation. At present, the weak market of adipic acid is mainly affected by the supply and demand, and the weak demand is still the main reason for the adipic acid market to get out of the haze. In terms of future market, the Business Association believes that the current oil price is narrow, pure benzene is hovering at a low level, the cost side has not changed greatly, the recovery trend of the chemical industry has been restrained to a certain extent, and the fundamentals are mainly empty. More importantly, the demand side still can not see any good, it is expected that in the current context of supply and demand is not prosperous, there is still a breakthrough in the near future.

The cost of PA66 is generally supported by adipic acid from upstream. Last month, the spot circulation of PA66 was less and the supply was weaker. In July, the spot supply was partly improved, but the on-site supply was still at a low level. According to reports, this month the domestic chip plant operating rate continued to run at low load. Among them, Liaoyang Xingjia stopped production, only half of Huafeng Group’s units started operation, and Dandong youfiber Technology Co., Ltd. also shut down half of the units. Shenma industry has a relatively high operating rate of about 80%. At the same time, it also reflects the lack of confidence in the future market, with a low level of operating rate to divert excess supply pressure and stabilize the spot price of PA66. In July, the price of PA66 fluctuated in a narrow range, the resistance of merchants to shipment is still in place, and the actual trading is still less. Downstream factories purchase more scattered, take as you use, more resistant to high price goods, transaction improvement is limited.

Business agency analysts believe: July domestic PA66 market narrow shock adjustment. The spot price of adipic acid in the upstream is low, which can not support the cost of PA66. Weak downstream demand, slow follow-up, conflict with high price goods, the domestic chip mill control the operating rate to reduce the pressure of excess supply. At present, the situation of insufficient supply and actual trading is coexisting, which reflects that the domestic market is actually in a post supply and demand contradiction. It is expected that the PA66 market will continue to operate smoothly in the short term.