The domestic market price of PA by OX method has declined. As of August 8, the quotation of PA by OX method was 9,275 RMB/ton, down 12.81% from the highest price of 10,637.5 RMB/ton in mid October. The decline of PA market was hard to change.
The market of PA declined, and the main influencing factors were as follows:
First: unit restarted&industrial naphthalene plummeted
There are two main production processes for PA, one is to produce PA by OX method, and the other is to produce PA by naphthalene method. In the middle of October, the bidding of industrial naphthalene fell sharply, causing the price of PA produced by naphthalene method to drop sharply. Affected by this, the price of PA produced by OX method dropped accordingly. The supply of PA by OX method increased, some domestic overhaul devices were restarted, and the PA device by OX method in Tongling, Anhui Province was restarted this week. Affected by the restart of the device, the domestic PA operating rate rose to more than 50%, and the price trend of PA on the market declined.
Second: The price of raw material OX was lower and the cost was lower
The price trend of OX in China declined. As of November 8, the price of OX was 9,000 RMB/ton, down 6.25% from the middle of October. Some devices in the market were still under maintance. According to the manufacturer, the supply of OX, the raw material for reaction, was still tight. Affected by the decline of mixed xylene market, the market for OX was lower. Affected by this, the price of PA continued to decline.
Third: The plasticizer market fell back and the demand for PA was weak
The downstream DOP market price trend of PA declined. On the 8th, the domestic DOP price was 9,960 RMB/ton, and the operating rate of domestic DOP enterprises was stable. For PA, it was mainly purchased on demand. The mainstream price of DOP was 9,900-10,000 RMB/ton. The downstream market decline was a negative impact on the PA market and PA market dropped.
Market outlook
In the short term, the price of OX is weak, the market of downstream plasticizer industry declines, and the supply of PA increases. It is predicted that the market price of PA will still have space to fall in the later period due to the superposition of negative factors.
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