[PA6 Morning Update] Expected Recent PA6 Market to Slightly Adjust and Operate

1. Focus Points

1 ） On September 23, the instability of the Russia-Ukraine situation persists, and the U.S. may escalate its sanctions measures on certain oil-producing countries, leading to a rise in international oil prices. NYMEX crude oil futures for the November contract increased by $1.13 per barrel to $63.41, a month-on-month increase of 1.81%. ICE Brent crude futures for the November contract rose by $1.06 per barrel to $67.63, a month-on-month increase of 1.59%. China's INE crude oil futures for the November contract fell by 8.9 to 475.3 yuan per barrel, and rose by 7.0 to 482.3 yuan per barrel during the night session.

2 ） Last week's settlement price of Sinopec caprolactam was 9,078 RMB/ton (six-month acceptance without interest), a decrease of 106 RMB/ton compared to the previous period.

3 Sinopec's East China and South China refineries have reduced the price of pure benzene by 100 yuan/ton, setting it at 5900 yuan/ton, effective from September 4.

Core logic: Raw material prices have fallen, and downstream replenishment sentiment is cautious, leading to a weak operation in the PA6 market.

2. Price List

3 . Market Outlook

The market is facing multiple bearish factors, and the price of caprolactam has declined, weakening cost support. Additionally, downstream production enterprises for chips have a cautious attitude towards restocking, while polymer enterprises are experiencing slow shipments and negotiations for sales. It is expected that the PA6 market will operate with slight adjustments in the near term.