China polyamides producers lower operating rate on high inventory

30 March 2012 09:10  [Source: ICIS news]

SINGAPORE (ICIS)--China’s polyamides makers have reduced the operating rate at their plants because of high inventory and weak downstream demand, industry source said on Friday.

Some producers have lowered their operating rates by 5-10% from the beginning of March to relieve high inventory pressure, market source said.

Most of the normal-speed spinning PA6 chips producers have 15-20 days worth of inventory, or even higher to over 25 days worth of inventory, market sources said.

While the high-speed spinning PA6 chips producers have 7-10 days worth of inventory currently, the source added.

The inventory levels grew because of a slow demand recovery from the downstream textile sector.  

Most polyamides producers in domestic market are running their facilities at an average of around 70% of capacity, compared with 75%-80% in early March, as some polyamides lines have been shut down, the source added.

In addition, some polyamides producers have brought their units off line, company sources said.

Yueyang Baling Shihua Chemical & Synthetic Fiber, Wuxi Chang an Macromolecule Material, and Jiangsu Ruimeifu Industrial (macromolecule polymer), have shut some of their polymer lines this week, with a total capacity of 90,000 tonnes/year, company source said.

“If the demand remains weak, the operating rate of China polyamides producers is likely to continue to decline in April,” a market player said.

Imported caprolactam prices decreased to $2,740-2,760/tonne (€2,055-2,270/tonne) on 29 March, from $3,000/tonne in early Feb.

With the slump of raw material, downstream polyamides products prices also decreased in March.

Prices for the normal-speed spinning PA6 chips made of industrial fibers were assessed at CNY 23,000-23,500/tonne ($3,651-3,730/tone) on 29 March, compared with CNY25, 000-25,500/tonne in early Feb, according to Chemease, an ICIS service in China.

($1 = €0.75 / $1 = CNY6.30)

By: Angeline Zhang

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