Demand is not strong, cost side shocks, PA6 price turns to fall in May

1、 Price trend:

Sulfamic acid 

According to the data of the business club’s block list, the domestic PA6 market rose and fell in May, and the spot price rose first and then fell. As of June 1, the mainstream offer price of sample enterprises for CNMC 2.75-2.85 was about 14566.67 yuan / ton, a decrease of 1.80% compared with the average price at the beginning of May, and a rise of 37.83% compared with the same period last year.

2、 The influencing factors were analyzed

In terms of upstream caprolactam, the domestic spot market showed a strong trend in early and mid May. The price of direct raw material pure benzene began to decline from a high level in the middle of the month, and the cost side effect of caprolactam was weakened. In addition, in the second half of the month, crude oil and caprolactam fell in a wide range, and the external news was bad for pure benzene, and the price fell continuously. The demand follow-up of downstream enterprises is insufficient, and caprolactam market is poor. It is expected that caprolactam will continue to decline in the short term.

In the first half of May, caprolactam in the upper reaches was stronger, PA6 spot turned, continued the negative trend for more than a month, and followed up the upper reaches. In the last ten days, caprolactam market trend turned down, and the cost support of PA6 turned weak from strong. Downstream factory purchase operation is cautious, follow-up is slow. Floor trading light, the actual trading is mostly small single. The price of engineering materials is slightly higher than other materials. The profit situation of polymerization plant continued to be in the pattern of loss. The decline of engineering materials and chips was similar. There were few transactions outside the contract of high-speed spinning, and the price was depressed due to the inventory pressure of production enterprises, thus weakening the market mentality.

3、 Future forecast:

Business analysts believe that: in May, the caprolactam market in the upstream of PA6 rose and turned to fall, weakening the positive market in the cost side of PA6 in the first half of the month. Downstream factories mainly need to pick up the goods, the plastic industry is generally in the off-season, the consumption of end users is low, and the picking up operation is cautious. It is expected that the spot price of PA6 will be adjusted in a narrow range in the near future.

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