The Nylon Chips Maybe Into a Downward Channel

Recently, the pure benzene prices kept firm, but CPL price continued weakness because of oversupply, which also made the nylon chips difficult to be raising trends and the market price of the nylon chips went weak slightly. At present, the nylon conventional spinning chips were quoted at 19,800-20,400 Yuan/ton in the market, the product quotation in prophase was 19,900-20,500 Yuan/ton. The inquiry was scarce in the market and the purchasing emotion of downstream customers was general. Meanwhile, the market price of the high-end nylon high-speed spinning chips was 20,500-22,400 Yuan/ton in Jiangsu, China and the product quotation in prophase was 20,800-22,400 Yuan/ton. The trading in the market remained cautious. Therefore, what about the situation of the nylon chips? We think that the nylon chips will remain weak operation in afternoon market.

Due to the slow growth of the global economy, the oil price was lack of the rising power. The international crude oil price was fallen in Oct. 22nd, the price of New York crude oil fell 1.32 dollars to 88.73 dollars per barrel, down 1.47%. London Brent crude oil price dropped 70 cents to 109.44 dollars per barrel, down 0.64%. As a whole, the oil price would be continued to follow the downward trends owing to several bad factors. Due to the weak bullish support, the CPL price continued down trends in the market. The price had different degrees of backing at home and abroad. Now the market quotation of CPL is 18,700 Yuan/ton, fell 350 Yuan/ton than the beginning of this month. The quotation of CPL is 2,380 dollars/ton in overseas market, declined 30 dollars/ton than the beginning of this month. The continuous falling of the upstream raw material also inhibited the price trends of the nylon chips.

Recently, the export situation of textiles was not optimistic owing to the unclear domestic economy and insufficient confidence. The export growth of the textile and apparel further slowed than the first half of this year. According to the statistic data from the General Administration of Customs, the cumulative total exports of the textiles and apparel reached 162 billion dollars from Jan. to August in 2012, which fell 0.7% year-on-year, the total exports of the garments and accessories were 99.5 billion dollars, down 0.7% year-on-year.

Generally speaking, we think that the market situation of nylon chips will be into the downward channel.