SunSirs: Raw Materials Experienced Three Consecutive Declines, and the PA Market Remained Sluggish in August

https://www.chemnet.com   Aug 29,2024 SunSirs

The PA market remained sluggish in August

According to the Commodity Market Analysis System of SunSirs, as of August 28th, the price of PA produced by OX method was 7,587.50 RMB/ton, a decrease of 3.80% from the price of 7,887.50 RMB/ton on August 1st. The prices of raw materials had been continuously falling, and the price of PA had slightly declined several times in August, resulting in a sustained downturn in the PA market. At the end of August, domestic OX method PA was priced at 7,500-7,700 RMB/ton before leaving the factory, while domestic naphthalene based PA was priced at 7,100-7,300 RMB/ton before leaving the factory.

Supply side: Stable supply of goods

The operation of domestic PA plants was temporarily stable, the PA equipment in Tongling, Anhui was running normally, the 100,000 ton PA plant of Xinyang Group was running stably, and the PA equipment of Shandong Hongxin was undergoing maintenance. The domestic PA operating rate was around 60%, and the spot supply of PA was stable. The sales situation of PA manufacturers was average. In August, the industrial naphthalene price stabilized strongly, and the naphthalene based PA market stabilized. The OX market fell, and the cost support decreased, resulting in a decline in the OX method PA market.

The cost of raw material OX had dropped for three consecutive times

According to the Commodity Market Analysis System of SunSirs, as of August 28th, the price of OX was 7,900 RMB/ton, a triple decline of 7.06% compared to the price of 8,500 RMB/ton at the beginning of the month. The price of OX had fallen, and the cost of raw materials for PA had decreased, resulting in significant downward pressure on PA. Industrial naphthalene manufacturers had reduced their load and pressure, resulting in a tight supply. Industrial naphthalene was experiencing a narrow range of price increases, and there was a strong willingness for the rise of naphthalene based PA. PA manufacturers were losing money, and they had a strong willingness to raise prices. The downward pressure on OX method PA raw materials was increasing, and OX method PA prices were weakly consolidating.

Demand side: DOP market hit bottom

According to the Commodity Market Analysis System of SunSirs, as of August 28th, the price of plasticizer DOP was 8,761 RMB/ton, a decrease of 7.78% from the DOP price of 9,500 RMB/ton on August 1st at the beginning of the month. Gold September was approaching, terminal demand was slowly recovering, raw material 2-EH prices stopped falling and rebounded, costs stopped falling, downstream customers' enthusiasm for placing orders rebounded, plasticizer transaction willingness increased, and plasticizer DOP prices had stopped falling and rebounded.

Market outlook

According to the PA products data analyst of SunSirs, in terms of cost, the price of OX had fallen, and the cost of PA had decreased; In terms of demand, the downstream DOP market had rebounded and stopped falling, while the demand for plasticizers had slightly rebounded. In the future, with cost reduction and weak demand, it is expected that the OX method PA market will weakly stabilize.

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