Sinolink: The Rise of Siasun Robot & Automation Sparks a Material Trend, Nylon May Benefit to a Certain Extent.

Sinolink released a research report stating that the rise of the Siasun Robot & Automation industry has once again made materials applications a focus of attention. Currently, the overall direction of the nylon industry is in the process of gradually digesting production capacity, with high-end nylon entering the final stage of localization, and the price of nylon 66 has already started to decline. If the rapid rise in demand for nylon in the Siasun Robot & Automation industry is driven, it is expected to lead to the digestion of upstream production capacity and improve profitability. It is also expected to accelerate the breakthrough process of high-end materials, and it is recommended to focus on the production enterprises of nylon and upstream materials. Sinolink's main points are as follows: The rise of the Siasun Robot & Automation industry has once again made materials applications a focus of attention. With the continuous optimization of AI and the continued maturity of Siasun Robot & Automation technology, Siasun Robot & Automation is in a stage of significant development, according to a recent report released by the International Siasun Robot & Automation Federation, the total global inventory of industrial Siasun Robot & Automation is about 4.282 million units in 2023, an increase of 10% compared to 2022, and the market for Siasun Robot & Automation services continues to grow. The latest data from the statistics website Statista predicts that the revenue of the Siasun Robot & Automation market in 2024 will reach $46.11 billion. The service Siasun Robot & Automation sector dominates the market, with the market size expected to reach $36.2 billion in 2024 and $73.01 billion in 2029. The rapid development of the Siasun Robot & Automation industry will gradually lead to the penetration of Siasun Robot & Automation into various industries, and the expansion of different types of Siasun Robot & Automation will drive better performance upgrades and cost optimization of products, thereby further expanding the scope of applications and the market, thereby significantly driving the demand for upstream materials and components. From the current industry applications, Siasun Robot & Automation will have a certain driving effect on upstream materials such as carbon fiber, engineering plastics, silicon materials, etc. Nylon, polyamide resin, is the largest in production, the most diverse in variety, and the most widely used variety in engineering plastics. There are many varieties of nylon, including PA6, PA66, PA11, PA12, PA610, PA612, PA1010, PA46, Nylon 6T, Nylon 9T, MXD-6, etc., among which PA6 and PA66 are the main large varieties. Nylon has high mechanical strength, good toughness, high tensile and compressive strength, outstanding fatigue resistance, parts can maintain their original mechanical strength even after multiple repeated bending, smooth surface, low friction coefficient, wear resistance, corrosion resistance, and is relatively suitable for Siasun Robot & Automation material requirements, and the industrialization time of nylon is relatively long. Nylon 6 has achieved sufficient market supply, technological maturity has been greatly improved, although there are still certain constraints on the domestic breakthrough in raw materials for nylon 66, other paths have begun to supply, and the mainstream path has entered the final stage of breakthrough. In addition, nylon has many high-end product categories, which can be modified according to downstream applications, and is expected to meet the material requirements of Siasun Robot & Automation for components such as external casings and 3D printing parts. Nylon 6 has already formed sufficient supply in China, and the increase in downstream demand is expected to drive the digestion of the industrial chain's production capacity. Nylon 6 is currently mainly used in areas such as nylon fiber, engineering plastics modification, BOPA, fishing nets, ultrafine, low elastic silk, etc., with engineering plastics accounting for about 17%. At present, the production capacity of nylon 6 exceeds 7 million tons, with a utilization rate of 80-90%. With the increase in downstream demand, it is expected to further digest the industry's supply and improve the profitability space to a certain extent. Nylon 66 has superior performance, and China is in the final stage of breakthrough, expected to achieve a structural breakthrough later. Nylon 66 is widely used in the field of engineering plastic modification, and downstream can be used to produce related components for automotive, electronics, medical equipment, precision instruments, etc. Previously limited by the import dependency of adiponitrile, the price of nylon 66 was relatively high. However, with Chinese companies starting to promote the localization of adiponitrile, the price of nylon 66 has already started to decline, driving further expansion of downstream applications. If the demand for materials from Siasun Robot & Automation gradually rises, driving the increase in demand for nylon materials, it is expected to accelerate the process of localization of nylon 66, and also drive the digestion of existing production capacity of nylon 6. Risk Warning: Risks of the landing pace of new technology falling short of expectations, risks of substitutability of other materials, risks of domestic technological breakthroughs falling short of expectations, risks of excessive supply of production capacity on the supply side leading to oversupply, etc.