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, a drop of approximately 4.88%.

The primary cause of this decline is the weakening price of caprolactam, the core raw material for PA6. 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 has directly driven down PA6 production costs.

On the supply side, operating rates for PA6 plants remain high, and the market is experiencing a concentrated release of previously added capacity, resulting in ample supply. Producers are prioritizing volume over price to reduce inventory, leading to transaction prices typically being lower than listed quotes.

Demand remains weak, with insufficient orders from downstream sectors such as textiles, chemical fibers, and modified plastics. The market is currently in a traditional off-season, and enterprises lack confidence in the future outlook.