Last week! The price of nylon fell by 250-350 yuan/ton.
Thinking back to the last time nylon prices rose, it was the last time…
Compared with the same period last year, the price difference of nylon POY is nearly 2,800 yuan/ton.
Is this the bottom of the story?
Since this year, the price of nylon yarn has been in a long-term decline. The current quotation of POY is 15,300 yuan/ton, the quotation of DTY is 17,550 yuan/ton, and the quotation of FDY is 16,350 yuan/ton.
If demand cannot keep up, price increases are impossible
During the Dragon Boat Festival holiday, the number of domestic trips across the country reached 106 million, a year-on-year increase of 32.3%, which was 112.8% of the same period in 2019. Domestic tourism revenue was 37.31 billion yuan, a year-on-year increase of 44.5%, which was 94.9% of the same period in 2019.
Although hot weather occurred in many places during the Dragon Boat Festival holiday, people’s enthusiasm for traveling has not been affected. Therefore, domestic and foreign sales of heat-resistant products such as sun protection clothing, sun protection hats, and ice sleeves have also increased significantly year-on-year this year.
Nylon yarn is different from spandex yarn. Its usage in textiles is still very large. Nylon yarn is used in 100% of nylon products, but the heat of nylon products is very average except for sun protection. Since April, with the cost price of spinning rising and falling, conventional varieties have become the only way out for the market.
There is no minimum, only lower
The market is currently in the off-season. In addition to the demand for sun protection fabrics, conventional nylon yarn is generally used for autumn and winter down jacket fabrics. Indeed, there is nowhere to sell it. There is still more than a month to accept the off-season. It is definitely impossible to increase prices in a short period of time. Yes, but the price decline will definitely continue.
Now that we don’t know whether there will be a peak season in the second half of the year, the demand for nylon yarn is definitely not going up. In fact, the price of nylon yarn has not yet completely reached the bottom. As early as 2020, the price of nylon POY was as low as 12,400 yuan/ tons, there is still room for a decline of 3,000 yuan from the current 15,300 yuan/ton, which shows that the price of spandex yarn will continue to fall in the future.
Since April this year, the price of nylon yarn has not increased at all. For raw material manufacturers, if prices cannot rise, their profit margins will naturally be smaller, and they definitely hope to increase prices. For weaving manufacturers, if the price of raw materials does not increase, it will be difficult for fabric prices to rise. Although there are orders, there is no money in their pockets.
Production is reduced and goods received are sharply reduced
The highest price of nylon yarn in recent years is probably during the period of 2021-2022, which happens to be the time when nylon yarn is “selling out”. It is obvious that the increase in demand can indeed help to increase the price of raw materials, but it is also because of the so-called “sales” of nylon yarn during that period. The hot sale was actually due to speculation, which caused many nylon silk fabrics to become unsalable in the later period. The stockpiles in the hands of traders ranged from millions of meters to tens of millions of meters. Later, the price of nylon silk was lower than the market price.
“There are not many people doing conventional nylon spinning in the market now. Nowadays, niche fabrics are more popular, and conventional ones can’t make much money at all.” said a trader.
After more than a year of low-price promotions, the inventory of nylon fabrics has been almost exhausted. However, due to the difficulty in rising prices of conventional fabrics and the reduction in demand for nylon fabrics, there are now fewer manufacturers of nylon fabrics on the market. If the volume is not as good as before, naturally fewer people will buy it, so the price cannot be compared with the peak period.
Taken together, the weaving market is currently in the off-season. It is unlikely that nylon prices will rise at this time. Overall, it will still fall steadily. Of course, with the arrival of the “Gold, Three, Silver and Four”, perhaps nylon yarn will usher in a price increase at the end of August. Let’s have a small rise.
</p
