Recently, the PA66 market has been consolidating

Market trend

influencing factors
Cost side: The raw material market has shown weak performance. The market for the main raw materials, hexamethylenediamine and adipic acid, has not fluctuated significantly recently, and the cost support is average. Due to insufficient follow-up of downstream demand, it is difficult to effectively transmit cost pressure from the raw material end to the PA66 finished product end. Although some raw material prices have fallen in the early stage, the current PA66 price is relatively low, and profit margins are severely compressed. Production companies operate near the cost line, and their willingness to further reduce prices is weak. This is also the main reason for the price stalemate this week.
Supply and demand side: In terms of supply, the overall operating load of the PA66 industry remained relatively stable this week, with sufficient spot supply on site. Some manufacturers still have some inventory pressure, and there is currently no significant positive support on the supply side. In terms of demand, we are currently in the off-season of traditional consumption, and downstream enterprises in the fields of modified plastics, engineering plastics, etc. have low operating rates. They hold onto the demand for PA66 procurement and replenishment, and their willingness to stock up is extremely low. The overall trading volume in the market is light, with few new orders and weak demand, which is the core factor restricting the price increase of PA66. The supply and demand sides are in a stalemate game stage, lacking obvious variables to break the balance.
Future forecast
It is expected that the PA66 market will continue to be dominated by weak consolidation in the short term. Under the dual pressure of average cost support and sustained weak demand, the market lacks upward momentum. However, considering that the current price is already at a mid to low level within a year, the manufacturer has limited room for concessions, and the possibility of a significant price drop is also relatively small. Overall, the price of PA66 is likely to continue to fluctuate narrowly around 18000 yuan/ton in the short term, and there is a possibility of a slight decline due to further shrinking demand. In the past week (July 8-14), the domestic PA66 market has been running steadily, and the price trend has shown a clear “sideways” trend. According to data from Shengyi Society, the price of PA66 remained stable at 18033.33 yuan/ton for several consecutive days this week, with a daily increase or decrease of 0.00%. From the perspective of cycle position, the current price is at a “low” level in the 10 day, 20 day, 30 day, 60 day, and 90 day cycles, and the price position is at a “medium low” level within a year. The overall market lacks obvious upward or downward volatility driving force, and the trading atmosphere is relatively stagnant.