[Recycled PA Weekly Review] Essential Demand Provides Limited Support, Market Stays Range-Bound And Stagnant

During this period, the domestic recycled PA (mainly PA6) market is stagnant, with a balanced tug-of-war between bullish and bearish sentiments.

Price: In East China, white nylon fabric crushed scrap was RMB 7,350/tonne, down RMB 55/tonne week-on-week. Prime spinning-grade recycled PA6 pellets were RMB 9,680/tonne, and reinforced modified recycled PA6 pellets were RMB 10,350/tonne, with a weekly fluctuation range of ±RMB 60/tonne, indicating minimal market volatility. Cost: High-temperature pelletizing and filtration losses for nylon materials remained relatively high, with comprehensive processing costs of RMB 820–890/tonne. Caprolactam futures were stable with slight declines, while raw material cost changes were minimal. The industry’s average processing margin was RMB 490–560/tonne, with leading companies maintaining stable profitability and smaller plants operating around breakeven.

Supply and Demand and Equipment: The average operating rate of the national recycled PA granulation industry is 38.4%, unchanged from the previous period; there are no key facilities undergoing maintenance this week, and industry operations remain at a low and normalized level. The supply of recycled nylon fishing nets and textile scraps is stable, with a balanced supply and demand in the recycling and circulation segments; the arrival of recycled PA pellets at ports in South China has slightly increased to 0.35 million tons compared to the previous period. Downstream companies in the textile nylon, automotive injection molding parts, and fasteners sectors are purchasing based on demand, with no concentrated stockpiling at the end-user level, resulting in a slow transmission rhythm between upstream and downstream.

Transactions, Sentiment, and Futures: Market trading activity remains subdued, with rigid demand dominated by small-lot purchases and a lack of large-volume bulk deals. Industry participants maintain a strong wait-and-see attitude and continue operating with low inventory levels; caprolactam and nylon futures are moving sideways within a narrow range, with no clear guidance from the market, exerting only a limited impact on sentiment in the recycled spot market.

Market outlook: In the short term, there will be no fluctuations in raw materials and futures markets, and downstream demand is stable during the off-season. Recycled PA is likely to continue a sideways trend, and processing fees are expected to remain within the current range with little chance of significant change.

Note: The data in this article is compiled from publicly available information and is for market reference only. It does not constitute any investment or trading advice.