[pa6 daily review] supply decreases and downstream replenishes as needed, pa6 market steadies

1 Today's Summary

①、 The weekly settlement price of Sinopec caprolactam is 9,290 RMB/ton (six-month acceptance with no interest), down 285 RMB/ton compared to the previous period.

②、 Sinopec has increased the price of pure benzene by 100 RMB/ton in its East China and South China refineries, setting the new price at 6,150 RMB/ton, effective from August 12.

2 Spot Overview

Today, the polyamide 6 market is operating steadily. The raw material market remains stable, with cost pressures persisting due to the loss in chip profits. Moreover, downstream buyers are mainly replenishing stock at lower prices as needed. The atmosphere for transactions of some low-priced slices is acceptable, with market transactions being negotiated. The East China PA6 regular spinning is priced at 9150-9650 RMB/ton for cash with short delivery, while the high-speed spinning spot is at 9800-10000 RMB/ton for acceptance delivery. The price in Chaohu is 8550-8650 RMB/ton for cash self-pickup.

3 Production dynamics

1 The capacity utilization rate of polyamide 6 is 74.68%.

2 The profit for conventional spinning of polyamide 6 chips is -150 RMB/ton, and the profit for high-speed spinning is -351 RMB/ton. /ton.

4 Price Prediction

From the cost perspective, the caprolactam market is stabilizing, with losses in slice profits and continued cost pressure. From the supply and demand perspective, many domestic companies have reduced their operating rates, and more companies are planning to reduce production in the future, leading to expectations of reduced supply. Downstream activities are primarily focused on selecting low-cost options for replenishment as needed. It is expected that the PA6 market will experience slight adjustments in the near future.

5 Relevant product information

①、 Caprolactam Market: Today's East China Caprolactam price CPL market remains stable and consolidating at 8750 yuan/ton acceptance delivered. With the weekend approaching, spot trading has decreased, and the downstream is mainly in a wait-and-see mode.

②、 Nylon filament market: The market price of nylon POY85D/24 in the Jiangsu, Zhejiang, and Fujian regions is 11,500-12,500 yuan/ton. Some quotations are slightly higher, driven by costs. It is challenging for companies to trade at high quotations. The overall negotiation for nylon yarn is based on just-in-need, and the industry is operating at a slight profit.

6. Data Calendar

Table 2 Overview of Domestic Polyamide 6 Data (Unit: 10,000 tons, RMB/ton, days)