Business Club: cost support strong, nylon filament festival with positive rise

Nylon price chart

In February, the nylon market atmosphere maintained good, and most of the industry’s product prices continued to rise for the better. According to the statistics of the business society, as of February 24, the price of nylon filament DTY (premium / 70D / 24F;) in Jiangsu Province was 18540 yuan / ton, the price of nylon POY (premium / 86d / 24F) was 15800 yuan / ton, and the price of nylon FDY (premium / 40d / 12F) was 18725 yuan / ton. Compared with the beginning of January 2021, the average increase was 8.64%, 8.67% and 7.41% respectively. Especially after the start of the Spring Festival, the price of nylon products continued to rise.

Strong price support of upstream products

Price rise and fall chart of nylon DTY industry chain

Since the start of the Spring Festival, nylon filament has continued to rise. The raw material side has strong support, and the rising cost is the fundamental reason. The nylon industry chain took advantage of the positive correction. Since 2021, the upstream caprolactam market has continued to have a tight supply and low inventory pattern. The price of pure benzene before the festival has continued to rise due to factors such as the failure of restart of its own devices, and the caprolactam price has opened a follow-up mode. According to the price monitoring of the business community, since December 2020, the price of upstream nylon products has continued to rise, with the increase of cyclohexanone, PA6 and PA66 reaching 39.51%, 24.12% and 15.77% respectively.

Comparison of upstream and downstream commodity indexes of nylon DTY

Analysis and forecast

On the whole, the nylon market atmosphere maintained good in February, and the prices of most industrial products continued to rise for the better. From the second half of 2020, the domestic chemical fiber demand has recovered to the normal level, and the terminal recovery may drive the demand for the whole chemical fiber industry chain. In 2021, the supply and demand pattern is good, the new production capacity of nylon fiber is limited, and the demand improvement may drive the future nylon fiber spinning to a new round of rising cycle. With the increase of the cost of nylon industry, it is expected that the nylon market will remain high in the short term.