First, Ms. Xiao stated that Chinese caprolactam capacity has been expanding continuously, reaching 7.27 million tons in 2024, accounting for 67.5% of the global total. Downstream nylon 6 demand dominated the market, but the sector was approaching saturation with intense homogeneous competition. However, in the past two years, the expansion of downstream nylon 6 capacity has outpaced that of caprolactam, driving the supply-demand dynamics to shift from oversupply toward balance.

Subsequently, Ms. Xiao pointed out that weak benzene prices have led to insufficient cost support. Sino-US tariffs and export restrictions from Europe and the US have intensified domestic supply pressure, and prices are projected to edge down slightly in 2026. The rise of manufacturing in Southeast Asia has also created competition for China's textile industry chain.

Finally, Ms. Xiao opined that future capacity growth will slow down amid heightened industry competition, putting pressure on small and medium-sized enterprises. She recommended that enterprises enhance competitiveness through integrated, high-end, and differentiated development strategies.