Weak Raw Material Prices Drive Continued Decline in China PA6 Market

Over the past week, the domestic PA6 market in China has continued its downward trend, with the rate of decline gradually widening. The benchmark price for PA6 fell from 12,300 RMB/ton at the beginning of June to 11,700 RMB/ton on June 7, marking a drop of approximately 4.88%.

The decline in PA6 prices is primarily driven by the weakening price of its core raw material, caprolactam. By early June, the benchmark price for caprolactam had decreased from 12,887.50 RMB/ton in early May to 11,100 RMB/ton, a cumulative drop of over 6% during May. This reduction in caprolactam prices has directly lowered PA6 production costs.

On the supply side, operating rates for PA6 plants have remained high, with a concentrated release of previously added capacity leading to an ample supply. Producers are eager to ship goods, often prioritizing volume over price to reduce inventory, resulting in actual transaction prices being lower than listed quotes.

On the demand side, orders from downstream sectors such as textiles, chemical fibers, and modified plastics have been insufficient. The market is currently in a traditional off-season, and enterprises lack confidence in the future outlook.