Squatting PA66 price increase | Is it really a shortage of goods?

This year, PA66 has continued to rise due to the shortage of supply of goods. So, is PA66 really as rumored to be extremely short? Let's review the development of global PA66 in 2018.

Development status of PA66 in 2018

From the above situation, it can be seen that since February, PA66 has been affected by the event of force majeure, the output has dropped sharply, and the supply of PA66 in the world has been tight. However, the Solvay and BASF plants in the late stage have resumed production, but the domestic PA66 price has not cooled down, but instead Continue to go higher, what is the reason?

In fact, the development of domestic PA66 has always had many drawbacks. The research and development of domestic adiponitrile has never been broken, and the production capacity cannot be estimated. Therefore, the demand for domestic PA66 is mainly from imports, and recently INVISTA, Solvay, Ao Shengde, BASF IV The company PA66 has started to increase prices, and affected by the Sino-US trade war, the US-made PA66C products are subject to a 25% tariff, and the PA66 imports are under pressure again. It is only natural that the domestic PA66 price will accelerate upward.

Is there a shortage of supply for the global PA66?

Recently, Ascend Performance Materials announced its force majeure at its Pensacola, Fla., plant, which is still about 90% of capacity, and President and CEO Phil McDivitt said in a statement: Under market conditions, the availability of 'PA66 will continue to be limited in the short term. ' Obviously, global PA66 production may be again in short supply. It is understood that there are currently 14 sets of adiponitrile production facilities in the world with a total capacity of 1.76 million. Tons, among them, INVISTA, Solvay, Aoshengde, and BASF have a combined capacity of 1.44 million tons, accounting for 80% of the total capacity of PA66. Due to excessive concentration of PA66 capacity, only one of the above four companies is subject to force majeure. Event impact, the global will cause PA66 supply shortage.

How to suppress the price increase of PA66?

At this stage, the international trade war is frequent, and the import and export are extremely unstable. Therefore, the supply of PA66 is still tight in the short term. The main method to suppress the price of PA66 is to accelerate the research and development of China's adiponitrile, stabilize the production capacity, and promote the development of PA66. , to reduce the dependence of PA66 imports, so it is essential to accelerate the localization of adiponitrile.

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