Why is the price of nylon rising and rising next to the Spring Festival?

Nylon one year market summary

In 2016, the overall market price of nylon showed an upward trend, which reversed the downward trend of the past two years and was stable. Its rise is mainly due to the high price support of nylon raw materials. In addition, the market supply is limited, and there are not many stocks of various manufacturers. The manufacturers seize the favorable opportunity and raise prices together. As of December 31, 2016, the average price of nylon FDY (40D/12F) was around 23,500 yuan/ton, up 25.33% from the beginning of the year; the average price of nylon staple fiber (1.5D*38mm) was 19,760 yuan/ton, compared with the beginning of the year. The price rose by 23.65%.

Specifically:

From January to July, it was mainly down to the main. Nylon market has no good boost, lack of strong support from upstream and downstream, and continued to remain depressed in the first half of the year. As of July 1, nylon FDY (40D12F) was quoted at 17,333 yuan / ton, down 7.56% from the beginning of the year, down 26.37% from January 1, 2015. At present, nylon manufacturers are all started at around 70%, and the inventory is over 30-45 days. Although the upstream caprolactam spot market continued to rise, but the supply is tight, and the downstream terminal is not willing to stock up, the demand remains cautious, and the nylon market is suppressed by the upstream and downstream.

The market sent a slight boost from mid-July. With the arrival of “Golden September and Silver 10”, downstream construction has driven the market to pick up, demand has begun to increase, but the overall trading atmosphere is still relatively light, and the reason for the price increase is not sufficient, it will maintain a small upward trend. With the launch of the G20 summit, many textile enterprises were forced to stop, the market has fewer sources of supply, and the inventory of manufacturers has accumulated more, which has weakened the momentum of the industrial chain to a certain extent. Nylon chips remain high, nylon manufacturers are forced to bear the cost pressure, the company's losses are high, but the market resistance is large, and the nylon trading center is narrowly arranged.

In the middle of November-December, the nylon market went up all the way. Due to the continuous rise of raw material caprolactam, the nylon market is on the verge of a sudden rise. After December 15, nylon entered a smooth passage. The rise in raw materials has stopped, the cost support of the nylon market is limited, and the continuous nylon market has been “exploited” for a month by high-priced raw materials, which has been exhausted. The overall market started in the vicinity of 60%, only a very small 40%, the market confidence is very insufficient.

Due to the price increase, many nylon manufacturers have stopped working and have a large loss. The supply is in short supply, no stock, and queued for payment. At present, the nylon market is mainly narrowly arranged, and some manufacturers still raise prices appropriately, but the reason for the price increase points to: supply. Nylon raw materials "have come to the forefront", nylon manufacturers are caught off guard. On December 21, the price of solid caprolactam increased by 19,000-19,500 yuan/ton, up by 4,000 yuan/ton from 14500-15500 yuan/ton at the beginning of the month, which is enough to be the fastest and biggest wave of growth in 16 years. From this point of view, the large fluctuations in nylon in the second half of the year is the general trend.

The beginning of the new year, the nylon offer is raised again

After the adjustment in the second half of last year, the price of nylon has been high, but the market has not stopped because of busy New Year. Last week, the nylon market as a whole showed a slight increase. The raw material market transaction remained high, and the cost pressure of nylon manufacturers continued to increase. Although the nylon market has been temporarily suspended, the enthusiasm of the manufacturers remains the same, and the raw materials and the shortage of raw materials have become the main reasons for this price increase.

It is understood that since the mid-December, the nylon staple fiber market has been dominated by high prices, and there has been no major move. The price has been appropriately lowered to stimulate downstream demand. As of last week, a nylon staple fiber 1.5D*38mm from Cixi was reported to be 20,000 yuan/ton, up by 800 yuan/ton from the beginning of the week. The manufacturers indicated that the downstream demand is still acceptable and the market is in short supply. Appropriate price increases will help to form a good circulation situation. Yueyang a factory nylon short fiber 1.5D*38mm reported 19,600 yuan / ton, up by 1,000 yuan / ton from the beginning of the week, the downstream manufacturers started to work more enthusiasm than the previous period, the appropriate price increase is the general trend.

The upstream benzene of nylon was up and down in the market last week, and the market was mainly based on stop-loss. After the opening of New Year's Day, Sinopec's listing price and market price gap is obvious, so Sinopec lowered 300 yuan / ton to implement the 7100 yuan / ton flat market. Although the support of the caprolactam market has weakened, the large area of ​​haze and severe pollution in the northern region in late December, Shandong Haili, Shan Dongming and Other devices have reduced the negative, the overall operating rate of caprolactam dropped to 76%. The large enterprises in the downstream slicing factories are mostly concentrated in the southern region. At this time, the imbalance between supply and demand in the market has made the market, which is in short supply, more panic.

At present, with the advent of the Spring Festival, many downstream manufacturers need to stock their stocks, and market supply becomes crucial. The downstream terminal knitwear market is generally ready to start, and the circular machine lace wrapping yarn is generally started in the field of 3-6 percent, and the warp knitting empty bag starts at no less than 70% of the support demand.

How is the recent nylon going?

Short line:

At present, the operating rate of caprolactam manufacturers has been affected by the decline, and the market supply and demand have lost balance. With the arrival of the Spring Festival, the stocking of stocks by manufacturers has become inevitable. The cost is consolidating at a high level, and the downstream terminal knitwear is generally ready for construction. It is expected that nylon prices will rise and fall in the near future, and it is necessary to pay close attention to upstream dynamics and downstream demand.

Long line:

In 2016, the rise in the nylon market was entirely driven by the raw material. Although there were high-priced raw materials, the market transactions were still relatively light, and manufacturers were on the verge of profit and loss. The ups and downs of price wars have also killed many nylon manufacturers' beliefs. At present, many nylon manufacturers have turned to other products, but the surviving nylon manufacturers can see extraordinary strength. With the increasing use of nylon, the demand for nylon will expand. It is expected that the nylon market will be weaker and stronger in 2017.