During the National Day, the crude oil market was boosted by the OPEC+ production reduction plan, and crude oil prices rose sharply, which boosted the commodity market from the cost side. After the holiday, the prices of pure benzene, caprolactam, and PA6 slices all followed suit, and the market got off to a good start.
Pure benzene was raised by 510 yuan/ton after the holiday and fell back by 320 yuan/ton yesterday to 7,900 yuan/ton. CPL rose by 850 yuan/ton to about 12,500 yuan/ton. PA6 conventional spun chips prices rose by 650 yuan/ton to 13,550 yuan/ton. At present, upstream cost-end prices have increased compared with before the holiday, but the sustainability is not long-lasting.
At the same time, the price of nylon yarn has also increased to varying degrees in the market. People who are not aware of the price increase think that the market situation has improved, but in fact this is not the case.
The cost side is only one aspect
The positive cost boost and the fact that downstream weaving manufacturers did not stock much raw materials before the holiday increased the market buying sentiment, and the enthusiasm for downstream purchasing improved, supporting the rise in prices.
Unlike the good start in the upstream market, although the prices of nylon products have increased, actual sales in the downstream market are still deserted.
“In fact, the nylon spinning products have not improved, but production must still be produced. It is impossible for so many machines to stop. Even if I don’t produce what others have to do, I can only say that the production volume will be reduced now.” A textile boss who specializes in nylon spinning said.
It is obvious that due to the overcapacity of nylon spinning last year, nylon spinning is not favored by the market this year. The price of nylon raw materials also fell due to this in the early stage. This increase is mainly caused by the increase in cost. This situation is actually not In favor of the continued rise of nylon raw materials, it can only be said that the price rises rapidly in a short period of time, and can only remain stable in the later period. When the cost-end price drops slightly, the price of nylon will immediately start to decline.
Only the continuous improvement of the demand side can the nylon raw materials continue to maintain a stable and rising state. Although the price of raw materials is rising, there is still a certain space limit for the price increase of nylon fabrics. Too much inventory makes textile bosses unable to We won’t sell at a lower price, but the increase driven by costs is certain.
As long as the demand is there
“Although orders have decreased, they are still there, but we will never lose money. This is the bottom line. Once the price is lowered, it will be difficult to increase, which is very detrimental to us.” The textile boss said.
Although people have been saying that nylon spinning is not good this year, many textile bosses are still shipping. It can only be said that the profit is lower than in previous years, or even non-existent. As the weather gradually cools down, some orders for nylon spinning will be placed in the later period. With the production volume halved and the inventory reduced, the price of nylon spinning will definitely increase in the later period.
According to the current market situation, nylon products have not yet seen a turning point. Raw material prices will more or less fall back. The cost side rose rapidly in the early stage and has already fallen back. However, the decline will not be very large. In the short term The market will still maintain a stable state. It may be that by mid-to-late October, the sales of autumn and winter fabrics will increase, and there may be a rise in raw material prices. However, assuming there is no support from the cost side, there will not be much room for price increases.
Generally speaking, the market does not currently see a large number of orders being placed. October is about to pass. The market may not rebound like in previous years, but as the textile boss said, there will still be some orders placed. The increase in raw materials Ups and downs are no longer the main reason for changing fabric prices. Today’s textile bosses only set prices according to the market. Similarly, customers must lower prices below the market price, and the cost is higher than the selling price. It is difficult to make money.
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