The PA market fluctuated and fell in December
According to the Commodity Market Analysis System of SunSirs, as of December 9th, the price of PA in neighboring countries was 6,612.50 RMB/ton, a fluctuating decrease of 3.47% compared to the price of 6,850 RMB/ton on December 1st. The operation of PA equipment was stable and supply of PA was sufficient; The price of OX fluctuated and fell, the cost of OX method PA decreased, the price of industrial naphthalene fluctuated and fell, and the cost support of naphthalene based PA weakened. Supply exceeded demand and cost support was insufficient, resulting in a fluctuating decline in PA prices.
Supply side: Adequate supply of goods
80% of the PA equipment in Tongling, Anhui had started construction; The 100,000 ton PA plant of Xinyang Group was operating normally, and the PA equipment of Shandong Hongxin was starting up normally; Panjin Ruide Chemical's PA equipment was operating at 80% load, while Shijiazhuang Bailong Chemical's PA equipment was operating normally. In December, the operating load of domestic PA plants remained stable, with about 70% of PA manufacturers starting production. The supply of PA from manufacturers was stable, and the supply of PA was sufficient.
The cost of raw material OX had decreased
According to the Commodity Market Analysis System of SunSirs, as of December 9th, the price of OX was 6,700 RMB/ton, a fluctuating decrease of 2.90% compared to the price of OX of 6,900 RMB/ton on December 1st. In December, the price of OX fluctuated and fell, causing a decrease in the cost of OX method PA and increasing downward pressure on OX method PA.
Demand side: The DOP market fluctuated and fell in December
According to the Commodity Market Analysis System of SunSirs, as of December 9th, the DOP price was 8,826.25 RMB/ton, a fluctuating decrease of 2.35% compared to the DOP price of 9,038.75 RMB/ton on December 1st. The price of plasticizers fluctuated and fell, the operating rate of plasticizer enterprises remained stable, and the supply of plasticizers was sufficient. The downstream PVC off-season was approaching, and the demand for plasticizers was falling. PVC product companies were gradually experiencing a decline in production, and as entered November, the traditional off-season in the market, downstream PVC production was expected to decrease. The expected operating rate of plasticizer enterprises decreased, and plasticizer manufacturers had weak demand for PA. The support for PA demand had weakened, and the downward pressure on PA had increased.
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 expected operating load of DOP manufacturers had decreased, and downstream support for PA had weakened. Overall, with the decrease in costs and sluggish demand, it is expected that the market for PA will fluctuate and decline in the future.
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