Price trend
According to the data of the business club’s block list, the domestic PA66 market still rose in late January, and the spot prices of various brands increased. As of January 28, the average offer price of PA66 medium viscosity injection molding sample enterprises was about 29900 yuan / ton, up 1.70% compared with the average price at the beginning of the month.
In terms of upstream adipic acid of PA66, China’s adipic acid market ended its downward trend in June, and the trend recovered. Most dealers quote tentatively high, East China, South China and other regions generally rose. At present, the operating rate of adipic acid manufacturers remains stable, about 80%. The market supply is relatively sufficient, and the inventory pressure of manufacturers is acceptable. At present, the pressure on the manufacturers’ inventory is not great. In the early stage, the dealers had a wave of price reduction to remove the inventory. At present, the social inventory is more reasonable. Combined with the replenishment behavior in the downstream years ago, the pressure on the supply side is generally controllable. However, near the Spring Festival, the market may gradually accumulate in the later period. Under the influence of the off-season effect of adipic acid, the market supply pressure may rise in the later period. Mainly due to the increased pressure on enterprises to ship, high price support may be unsustainable. It is expected that the market will have a smooth transition before the festival, and a small drop in prices will not be ruled out.
Adipic acid supported the cost side of PA66. Due to the tight supply of adiponitrile, the supply of PA66 was still slightly tight in late January, and the improvement of supply was limited. At the end of last year, the operating rate of Zhejiang Huafeng rose, and there was basically no news of a rise in the supply side. At present, domestic polymerization plants are mainly used to meet the contract orders, and the shortage situation outside the main customers may be even worse. At present, PA66 has no pressure on inventory, and the industry is willing to support the price. In addition, the upstream raw material has a high rise, while PA66 obtains the cost support, it is also supported by the cost pressure. Recently, there is just a need to pull the hoarding operation before the Spring Festival, and the domestic spot price has gone up.
Business analysts believe: PA66 in late January domestic market trend is strong, spot prices rose. The upstream product market remained firm after rising, which supported the cost of PA66. The price of outer market PA66 is at a high level, and before that, many international big factories have increased the product price of PA66 industry chain. The downstream take goods passively follow-up, just need to buy mainly, although the stock before the festival is gradually completed, but the cost side pressure makes the market reluctant to sell at low prices. PA66 market is expected to remain high in the short term.
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