[PA6 Daily Review] Early in the Week, Industry Participants Cautiously Observe PA6 Market's Steady Operation

1 Today's Summary

①、 Last week's settlement price for Sinopec's caprolactam was 9,078 RMB per ton (six-month acceptance without interest), down 106 RMB per ton compared to the previous period.

②、 Sinopec's pure benzene prices at refineries in East and South China have been reduced by 100 yuan/ton, now set at 5,900 yuan/ton, effective from September 4th.

2 Spot Overview

Table 1 Summary of Domestic Polyamide 6 Prices (Unit: Yuan/Ton)

Today, the nylon 6 market is operating steadily. The market price of caprolactam continues to decline, with weakened cost support. However, downstream production enterprises have limited demand and a cautious attitude towards raw material procurement, opting to observe the market. Overall market transactions are limited, with actual negotiations taking place. Regular spinning PA6 in the east is priced at 9,050-9,350 RMB/ton cash short delivery, while high-speed spinning spot prices are 9,500-9,900 RMB/ton delivered with acceptance. Chaohu is priced at 8,500-8,600 RMB/ton cash self-pickup.

3 Production dynamics

1 The capacity utilization rate of polyamide 6 is 75.79%.

2 The profit for conventional spun nylon 6 chips is -150 yuan/ton, while the profit for high-speed spinning is -343.2 yuan. /ton.

4 Price Prediction

From the cost perspective, the caprolactam market is weakly consolidating, with reduced cost support; from the supply and demand perspective, recent resumption of supply by some polymer enterprises is expected to increase bearish pressure on the market. Additionally, the downstream procurement mentality before the festival may remain cautious, maintaining just-in-time replenishment for raw materials. It is expected that the PA6 market will undergo slight weak consolidation in the near term.

5 The condition of related products.

①、 Caprolactam Market: Today, the market price of caprolactam in East China is around 8550 yuan/ton, accepted for delivery. The market confidence in caprolactam is relatively weak, and some negotiation intentions are trending lower. Downstream purchasing is cautious, and buying interest is currently limited.

②、 Nylon filament market: The market price of nylon POY85D/24 in the Jiangsu, Zhejiang, and Fujian regions is 11,500-12,500 RMB/ton. Driven by costs, some quotations are slightly higher, and there is difficulty in trading at high quotations by enterprises. The overall negotiation for nylon yarn is based on just-in-time demand, and the industry is experiencing thin profit margins.

6. Data Calendar

Table 2 Overview of Domestic Polyamide 6 Data (Units: 10,000 tons, Yuan/ton, Days)