M O N T H LY R E P O R T

July 2021

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July AA & nylon 66 chip market report

I. Market review
1.1 Adipic acid market review

China adipic acid price trend and profit

yuan/mt AA profit (RHS) Adipic acid
12000 3000

11000 2500

2000
10000
1500
9000
1000
8000
500
7000
0
6000 -500

5000 -1000

China adipic acid (AA) market was in general steady in July. Demand for spot cargoes was thin, as downstream was in
slack season and mainly covered their rigid demand from contract suppliers. As benzene contract prices rushed up
and then tumbled, and kept adjustment through the rest time of the month. Speculative demand was lacked. Major
AA contract suppliers had maintained their nomination at highs, and until the end of the month they settled the July
contract at 11,500yuan/mt, while the actual concluded levels (after discounts to different purchasing volume) were
around 11,000-11,200yuan/mt, some lower around 10,800-11,000yuan/mt, by cash, ex-works. Mainstream traded
levels in AA spot in in East China was required at around 10,700yuan/mt, by cash, ex-works.

1.2 Nylon 66 chip market review

Nylon (polyamide) 66 chip market had narrowly dropped in July. Demand for a major downstream, modified plastics
(MP), reduced due to the restricted automobile production. The auto industry had been continuously refrained by
the tight micro chip supply, and affected the sales of related materials including nylon 66 plastics. But another down-
stream market, cord fabric, was better than that of MP, as sellers adjusted their product portfolio and kept inventory
rate in control. In addition, market insiders were waiting for Huafon’s new ADN plant, which was expected to start up
CCFGroup Monthly Report July 2021

in July originally. However, the start up was delayed. After 3-month decline, downstream had maintained a hand-to-
mouth purchasing mode and the total inventory of nylon 66 polymer was consumed to low. After hearing the delay
of the new capacity, downstream came to replenish intensively. By the end of July, major suppliers pegged their offers
at highs, as they expected ADN supply to be further tight in August. Cord fabric market had been a major support to
nylon 66 market.

Over the month, the traded levels of high-grade general-plastic-grade chips tumbled by 500-1,000yuan/mt to 38,500-
39,000yuan/mt, low-grade chips were talked at 35,000-36,000yuan/mt, and injection-plastic and textile-grade chips
were required at 39,000-40,000yuan/mt, by cash, ex-works.

China nylon 66 chip RMB and USD price trends

yuan/mt PA 66 RMB (yuan/mt) PA 66 USD ($/mt, RHS) $/mt
51000 4700

46000 4400
4100
41000
3800
36000
3500
31000
3200
26000
2900
21000 2600
16000 2300

Imported nylon 66 chip market maintained steady steady in July 2021, while imported sources were thin in the market.
By end-June, discussions for general-plastic-grade chips were around $4,450-4,500/mt, and that for textile-grade
chips and injection-plastic-grade chips were around $4,600/mt, CIF China.

II. Plant operation

2.1 AA plant operation
China adipic acid plant operating rate maintained steady at 72% in July 2021.

2.2 Nylon 66 chip plant operation

Nylon 66 chip plants’ operating rate maintained steady at 82% throughout July 2021.

III. Import and export

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CCFGroup Monthly Report July 2021

3.1 AA import and export (HS code 29171200)

Jun-21 Volume (mt) Value ($) Price ($/mt) Change m-o-m Change y-o-y
Import 1037.776 2,043,695 1,969 11.15% 20.60%
Export 33,947 51,834,382 1,527 -6.36% 126.21%
Source: China Customs

China's adipic acid imports

mt 2019 2020 2021
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

China's adipic acid exports

mt 2019 2020 2021
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

3.2 Nylon 66 chip import and export (HS code 39081011)

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CCFGroup Monthly Report July 2021

Jun-21 Volume (mt) Value ($) Price ($/mt) Change m-o-m Change y-o-y
Import 22,268 87,178,189 3,915 6.9% 25.2%
Export 11,611 54,219,506 4,670 15.7% 201.4%
Source: China Customs

China's nylon 66 chip imports

mt 2019 2020 2021
35,000

30,000

25,000

20,000

15,000

10,000

5,000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

China's nylon 66 chip exports

mt 2019 2020 2021
14,000

12,000

10,000

8,000

6,000

4,000

2,000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

IV. Market outlook

4.1 AA market outlook

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CCFGroup Monthly Report July 2021

In August 2021, the overall supply and demand pattern of AA market is expected to improve. Yangmei and Risun have
delayed their restart time, which is originally planned in Aug. Demand is expected to recover in mid and late Aug, as
the traditional peak season is coming. Order taking may warm up. But as benzene prices have dropped continuously
in July and early Aug, the contract settlement of AA may fall modestly in line with benzene.

4.2 Nylon 66 chip market outlook

Nylon 66 chip market is expected to be mainly steady. The supply tension of key feedstock ADN remains unsolved,
and major polymer plants insist on firm offers. Demand may gradually improving in Aug, so there will not be too much
sales pressure. The uncertain factor is Huafon’s ADN plant startup. The possible time line is in late Aug, but it may be
delayed further.

DISCLAIMER
All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui
Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice.
CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise
directly or indirectly from use of or reliance on such information. This report or any portion hereof may not be reprinted,
sold or redistributed without the written consent of CCFGroup.

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