Nylon Industry Chain Operating Situation in Perspective of the Cost

    The textiles peak season of "Golden September and silver October" was approaching the end, drove by the traditional peak season, whether the recent nylon products market condition was improved? How the profits situation changed? The author will through the analysis of nylon profits since September, to analyze the overall operation situation of recent industrial chain.

    Price Difference Analysis of CPL and Nylon Conventional Spinning Chips

    In September, CPL price obviously increased, the rise range was 1,000 Yuan/Ton, which mainly drove by the increasing international oil and pure benzene prices. Drove by the cost, nylon chips price increased synchronously, but after the Mid-Autumn Day and National Day, market prices began to drop, at present, the nylon conventional spinning chips transaction price was 20,100 Yuan/Ton, which fell 500 Yuan/Ton compared to the highest price in recent time. The main reason was the drop of CPL price, at present, the oversupply situation in CPL market was intensifying, especially in November, the Sinopec project in Baling of 100,000 tons device will formally put into production, which will be a great test to the CPL market.

    In Perspective of the price difference between CPL and nylon conventional spinning chips, since September, the price difference was mainly below 1,500 Yuan/Ton, since October, it showed more compression tendency, which indicated that the recent chips profits situation was not very optimistic and basically in the edge of the break-even operation. If the downstream demand continued to be low, the chips will possibly report a loss.

     Price Difference Analysis of Nylon Conventional Spinning Chips and Nylon Yarns

    The slump chips price made the cost support to downstream nylon yarns be weak, so since September, although the downstream demand showed a rising trend, the nylon yarns price rise trend was not very obvious, such as nylon FDY70D/24F price increased 800 Yuan/Ton compared with the price in the end of August, and DTY70D/24F increased 700 Yuan/Ton, among which the rise rates both less than the rate of the chips, so we saw since September, the price difference between nylon yarns and nylon chips dropped slightly. The price difference between nylon FDY and chips was 4,500-4,800 Yuan/Ton in September, which was in a small loss situation. In October, with the drop of chips price, the FDY loss situation was slightly improved, so far, nylon FDY was in break-even edge. In contrast, the situation of nylon DTY was slightly better, not so terrible as to sale in loss.

    In the perspective of stock level, at present, the whole stock level of nylon yarns was for 20-30 days, which was basically equal to previous time, and the operating rate of manufacturers was generally 60%-70%. Recently, sales performance of fine denier nylon yarn products was good, which were mainly used to produce superfine density down jacket products and socks, so the operating rate of fine denier products could be promoted to 80%-90%. In addition, the operating rate of industrial curtain cloth basically maintained at 60%.

    Generally, Since September, nylon industry overall operated weakly, and the international oil prices showed shock trend, although the future market condition was not very clear, the oil price could still maintain more than $90, and international pure benzene price also remained strong, therefore, CPL and chips cost support remained strong, and the price will not have reduce dramatically in the short term. But in terms of the nylon yarns, stable chips price made it lack of cost promotion, which went against the rise of yarns price, in addition to the traditional peak season will past by soon, individual varieties of nylon yarns may introduce price-off promotions under the pressure of excess supply, or reduce the operating rate, while generally nylon yarns price will maintain a stable trend.