Price trend
| Gamma-PGA (gamma polyglutamic acid) |
In mid November, the domestic PA6 market rebounded in a narrow range, with some spot prices rising. According to data monitoring from Business News Agency, as of November 20th, the mixed benchmark price of PA6 in China was 14475 yuan/ton, a decrease of -0.34% compared to the average price level at the beginning of the month.
Cause analysis
In terms of raw materials:
From the above figure, it can be seen that the market price of caprolactam increased in mid November. The price of raw material pure benzene has increased, which is beneficial for cost support. Some enterprises have reduced the load of caprolactam units and reduced market supply. Downstream procurement is on demand, and the demand side is relatively stable. In the future, the supply of pure benzene and caprolactam is showing a rebound trend, and it is expected that the price of caprolactam may temporarily stabilize in the short term.
On the supply side:
In mid November, the load of PA6 production enterprises slightly increased, with an average operating rate of around 75% in the interval. The market supply is almost flat compared to the previous period, and there is ample supply of goods on the market. The inventory level has taken on the previous low level, and there has been 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. In terms of terminal enterprises, their willingness to stock up in the middle of the year is average, with only some enterprises making pre orders, and overall, their 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 chips is weak.
Future Market Forecast
In mid November, the PA6 market rebounded in a narrow range. The price of caprolactam has increased, and the cost support for PA6 has increased. The demand side is cautious in picking up goods, and market trading tends towards the low end. The domestic polymerization plant has seen a narrow increase in load, and the inventory position remains low. The polymerization plant has a strong willingness to raise prices. It is expected that the PA6 market will continue to consolidate in the short term.
| http://www.lubonchem.com/ |