Price trend
| gamma polyglutamic acid agriculture grade |
In June, the domestic PA6 market was plagued by a mix of bullish and bearish trends, with various spot prices showing mixed fluctuations. According to data monitoring from Business Society, as of June 30th, the average factory price of PA6 in China was 13350 yuan/ton, a decrease of -1.29% compared to the average price level at the beginning of the month.
Cause analysis
In terms of raw materials:
It can be seen from the figure above that the market price of Caprolactam rose first and then fell this month. In the early days, the price of pure benzene, the raw material, fluctuated slightly, and cost support was still acceptable. The spot supply of Caprolactam in the market decreased, and enterprises increased prices more often. The willingness of downstream replenishment increased, and the market price of Caprolactam was stable and good. In the second half of the year, cost support weakened, and Caprolactam followed suit. The current market supply pressure has eased, with downstream on-demand procurement being the main focus.
On the supply side:
This month, the overall load of PA6 production enterprises remained relatively stable, operating in a narrow range below 71%, and the market supply remained stable. There is a risk of inventory position continuing to rise, and the supplier’s support for spot goods is average, with factory pricing under pressure.
| Gamma Polyglutamic Acid |
In terms of demand: Downstream, the load of the weaving and spinning industries has fluctuated. The actual trading is generally concentrated in low-end spot goods. The overall atmosphere of stocking on site is cautious, with no improvement in the situation of new orders. Buyers are resistant to high priced sources, and the overall demand for PA6 chips is average.
Future Market Forecast
This month, the PA6 market experienced a narrow range of fluctuations and weakened. The load of domestic polymerization plants is stable, and the supply remains sufficient. In terms of demand, it is average, and stocking tends towards low-priced sources. The price of Caprolactam weakened, and the support of PA6 cost side fell back. It is expected that the PA6 market may continue to fluctuate and consolidate in the short term.
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