1、 Price trend:

According to the data from the business club’s bulk list, the domestic PA6 market weakened in the fourth week of July, with most brands of spot significantly reduced. As of July 24, the mainstream offer price of 2.75-2.85 from the traders was about 11000.00 yuan / ton, which was 9.84% lower than the average price at the beginning of the month.

2、 Analysis of influencing factors:

The overall market of caprolactam in the upstream of PA6 fell this month. According to the data from the bulk list of business associations, as of July 24, the average domestic ex factory price of caprolactam was about 9600.00 yuan / ton, which expanded to 7.69% compared with the average price level at the beginning of the month. Last month, crude oil had strong support for pure benzene, and caprolactam was supported at the bottom of the market. Entering this month, pure benzene port inventory appeared high, pick up speed began to slow down. Due to the increase of inventory in Shandong local refining enterprises, it is difficult to release the inventory pressure, which hinders the price rise of pure benzene. Recently, the raw material price is mainly stable, and the cost side support is limited. The downward trend of caprolactam is still in the trend. In addition, sufficient supply, poor downstream demand, the overall market is weak. Caprolactam prices are expected to continue to fall in the future.

In the fourth week of July, PA6 market was also mainly affected by the negative effect of upstream caprolactam, and the market price was closely related. At the beginning of the month, the highest point was 12200.00 yuan / ton. Since then, the spot price of PA6 continued to “float green”, and merchants actively shipped goods to reduce their positions. At present, the domestic PA6 market inventory is still high and there is a risk of accumulation, and businesses are going to take orders at a low price near the end of the month. The lower reaches of the main replenishment operation, the strategy is biased towards rigid demand procurement. Demand follow-up is not timely, in addition to the inventory is too much, business bearish aftermarket, the market mentality is not strong, the transaction atmosphere is general.

3、 Future forecast:

Business agency analysts believe that: in the fourth week of July, domestic PA6 market fell, and spot prices of various brands decreased significantly. The trend of caprolactam in the upstream decreased obviously, and the support for the cost side of PA6 was weakened. The demand of downstream slicing plants is weak, and the strategy of bargain hunting is the main strategy. The improvement of PA6 trading volume is limited, and businesses are generally short of the future market and sell profits and reduce positions. It is expected that PA6 market will continue the weak trend in the near future.