Weak Raw Material Prices Drive Continued Decline in China PA6 Market

Over the past week, the China PA6 market has experienced a continued downward trend. The benchmark price for PA6 fell from 12,300 RMB/ton at the beginning of June to 11,700 RMB/ton by June 7, marking a decline of approximately 4.88%. This decline is primarily driven by weak raw material prices and a lack of positive support from both the cost side and the supply-demand dynamic.

The core raw material, caprolactam, saw its price weaken significantly, dropping from 12,887.50 RMB/ton in early May to 11,100 RMB/ton by early June, a cumulative decrease of over 6%. This has directly impacted PA6 production costs. Despite the narrowing rate of decline for caprolactam in early June, there are no signs of a rebound, and the cost outlook remains bearish.

On the supply side, operating rates for PA6 plants have remained high, leading to a plentiful supply. Producers are prioritizing volume over price to reduce inventory, resulting in actual transaction prices being lower than listed quotes. The industry is facing inventory pressure as a result.

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