Forecast of Engineering Plastics Market

Oct 10, 2023

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In August, there was more active guidance on the fundamentals of various products in the engineering plastic industry, which provided solid support for the price trend. POM and PC were the first to bear the brunt, leading the industry up due to supply tightening and policy benefits, respectively. Secondly, nylon products PA6 and PA66 were also supported by the cost side and saw steady growth, followed by growth. Only PET has experienced a narrow decline in market gaming. From a macro perspective, global inflation has cooled beyond expectations, the necessity for the Federal Reserve to raise interest rates has decreased, and concerns about economic recession have eased. The operational risks of factories at all levels in the engineering plastic industry have slightly improved, and the profitability of production enterprises has improved. Combined with the high and fluctuating international oil prices, the common remote cost of the plastic industry has strengthened. Overall, the market performance of the engineering plastic industry in August was characterized by a positive trend and a negative trend.

POM

The POM market was strong in August, leading the rise of the engineering plastic industry. The operating rate of domestic polymerization plants was close to full operation at the beginning of the month, and then the load gradually decreased to 81%, resulting in a synchronous contraction of spot supply. There is no pressure on industry inventory, and even some oversold situations occur, with significant support from the supply side for the market. The operating level of terminal enterprises this month is average, but stimulated by the tight supply of goods, the enthusiasm for stocking is still good, and the transaction position of orders is high. Traders’ confidence remains strong, and the sentiment of speculation on the market remains strong. Currently, we are about to enter the peak season of traditional plastic demand. Based on various factors, it is predicted that the POM market may continue to strengthen in the short term. It is recommended to focus on industry operating rates.

PC

After the sorting and operation of domestic PCs last month, the price trend increased significantly in August. Within the month, the overall operating rate of domestic PCs was adjusted within the 77% range, and the industry is still in a three-year high load position with abundant supply. But the PC anti-dumping ruling of the Ministry of Commerce came into effect within the month, which boosted the spot market rapidly. In addition, the rebound of raw material bisphenol A after the decline has strengthened the support for spot goods. Downstream just needs to pick up the goods, and on-site trading is still acceptable. Affected by the above two positive factors, it is expected that the PC market may continue to operate stronger.

PA66

The price trend of domestic PA66 in August was relatively volatile. Overall, the spot prices of various brands have increased throughout the month. During the month, the overall industry load decreased narrowly to around 65%, and supplier pricing operations were mainly active in supporting the market, forming a certain support for the spot market. On the upstream side, although domestic hexamethylene diamine is operating weakly, the adipic acid market has risen, and the trend of raw materials pure benzene and cyclohexanone has remained strong. The support for PA66 spot prices on the cost side is still acceptable. Downstream enterprises mainly rely on goods to maintain production, and their inventory is generally digested. The enthusiasm for terminal stocking needs to be improved. Buyers’ resistance to high priced sources of goods has created resistance to the rise, but the overall stability of the PA66 market in August has shown some improvement, and it is expected to maintain a sideways consolidation operation in the short term.