Price trend
| Gamma-PGA (gamma polyglutamic acid) |
In May, the domestic PA66 market showed a strong consolidation and then fell. The decline in spot prices is concentrated in the latter half of the year. According to data monitoring from Business Society, on May 29th, the domestic benchmark price of PA66 mixture was 21600 yuan/ton, with a price level increase or decrease of -5.68% compared to the beginning of the month.
Cause analysis
On the cost side:
In the first half of May, adipic acid was supported by the strengthening of the raw material pure benzene, and the strong cost side supported the market. But as the supply increases, the pressure on adipic acid from the supply side gradually becomes more prominent. The support for PA66 fluctuates as it rises first and then falls. At the same time, the news of a price drop of 1500 yuan/ton by overseas giant NVIDIA in June in the second half of the month has impacted the market in terms of hexamethylene diamine. Coupled with the previous high prices, the focus of the hexamethylene diamine market has significantly fallen due to the dual impact; Overall, the support of costs for the PA66 market has weakened.
In terms of supply:
The operating rate of domestic PA66 production lines remained stable with little movement throughout May. The overall industry load is around 70%. The production of the enterprise is stable, and the accumulation of inventory is average. In the second half of the month, suppliers generally lowered their factory prices, and the support gradually weakened.
In terms of demand:
In May, textile, electrical, and modification enterprises followed a routine in stocking and consumption, while most of the pick-up operations were focused on production. The main force of on-site trading maintains a strong demand for follow-up. In the second half of the month, with the decline of spot prices, the buyer camp is cautious and resistant to high priced sources. The demand side has average support for PA66.
Future Market Forecast
In May, the spot price of PA66 fell from a high level. The raw material market has seen a decline in support for the cost side of PA66. PA66 enterprise has a horizontal load and stable supply. The demand follow-up of terminal enterprises is average. It is expected that the PA66 market will continue to operate weakly in the future.
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