2016 Nylon & Spandex Industry Forum

New trends of nylon 6 industrial chain in 2016
——Qin Zhijian

2016-09-22 17:26:35

Mr. Qin first analyzes the CPL market, pointing out that the market will continue to move down, but the price fluctuating range is narrowing and the spread to benzene is crunched. CPL plants鈥� "turning better" is more because of its "self control" and "frequent communication".

Then, Mr. Qin shares the performance and forecast of PA6 market. CPL has got rid of the plight while nylon 6 chip鈥檚 tough time just starts. Nylon 6 chip is walking on the way that CPL has ever been through. The main reason is overcapacity, especially the sharp increase in 2015. Nylon 6 HS chip is slightly better than nylon 6 CS chip on easing substitution of Taiwan sources and concentrated producers and customers as well as frequent communication among plants. Price competition of low-grade HS chip is more obvious and the operation is expected to deteriorate further, especially the tendency of 鈥淏ad money drives out good鈥�. Condition of CS chip is poorer on constant capacity expansion and the impact from imported cargoes, while lackluster demand is the major cause, like a flash in the pan for staple fiber demand. The spread between high-grade HS chip and Sinopec鈥檚 CPL contract price may drop below 1,500yuan/mt with the starting new capacity of Hengyi. Price spread between CS chip and CPL liquid sources will maintain the barrier of 800yuan/mt with difficulty.

At last, Mr. Qin proposes some suggestions. Bitterness finishes for CPL industry, while hard times just begin for nylon 6 chip sector and seems never end for textile filament sector. Interest for capacity expansion has faded to bottom low after suffering low profit for long term. Under operational pressure, enterprises begin to adjust strategy-- differential products, improving quality, optimizing procurement, niche market, production efficiency 鈥︺€€