Prices are now falling in the nylon chain, due to lower material costs and a weakness in demand from downward processors at the same time. Margins of nylon 6 filament producers could however improve to the detriment of chip makers.
Caprolactam prices have begun tumbling in the last days in the Far East, due to ample supplies and a lack of demand from downward processors.
Spot prices in China have plunged by 750 yuan per metric ton in a single week, or 5.2%, at 13,650 yuan.
Prices have also declined on the international market, where CPL has lost 40$ in a single week at 1,680$ per MT, down more than 2%.
Nylon chip prices have also begun dropping in the meantime, being down 500 yuan to 14,400 yuan.
From their level a month ago, chip prices have lost 4%.
The chip sector is actually the weakest link of the nylon 6 chain with capacities now surging in China where demand is slowing down at the same time.
Chip producers are therefore expected to accumulate losses in the current period.
Nylon filament producers could take advantage of the fall of their material costs.
DTY prices have not yet followed the chip prices and margins could now rebound at filament plants, consecutively.
POY prices have however begun dropping in the last days although very slightly and DTY prices have been lowered by 200 yuan or about 1% at the end of the current week.
FDY prices have similarly decreased.
Nguồn: Emergingtextiles
