Price trend
| Gamma Polyglutamic Acid |
In March, the domestic PA66 market remained stable with some growth. According to data monitoring from Business Society, on March 27th, the domestic PA66 mixed benchmark price was 22900.00 yuan/ton, with a price increase or decrease of+1.03% compared to the beginning of the month.
Cause analysis
On the cost side:
Adipic acid: Due to the high price of adipic acid at the end of February and poor downstream follow-up in March, the performance of adipic acid has gradually weakened this month. The price of raw material pure benzene first rose and then fell, and there was no positive release on the supply side. Under the continued accumulation pattern, the offer of adipic acid continues to loosen, weakening support for PA66.
Hexanediamine: The market for hexanediamine has been operating strongly this month, and the market has been affected by multiple increases from international major factories, resulting in a gradual increase in prices. The improvement of the tight supply pattern in the superimposed market is limited, and it is expected to maintain a high point in the short term; Overall, the cost of two materials, one strong and one weak, provides sufficient support for the PA66 market.
In terms of supply:
This month, the operating rate of the domestic PA66 production line remained low and adjusted. The overall industry load during the month remained basically unchanged compared to the end of February, with an average of over 62%. At present, the production of enterprises is stable and there is no accumulation of inventory. The price adjustment operation is clear, and the supplier’s support is still sufficient.
In terms of demand:
Entering March, textile, electrical, and modification enterprises have been following a routine in stocking and consumption, with most of their procurement operations maintaining production as the main focus. The main force of on-site trading is supported by the follow-up of demand, and the buyer camp has slight resistance to high priced goods. Traders have strong confidence in stabilizing prices and are actively engaged in price fixing operations. The demand side has average support for PA66.
Future Market Forecast
The spot price of PA66 remained stable with an increase in March. The raw material market continues to be strong, providing sufficient support for the cost side of PA66. The PA66 enterprise has a low level of horizontal load, and the inventory position is also low. The demand changes of terminal enterprises are limited. It is expected that the market will continue to operate steadily in the short term.
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