August is coming to an end, and the nylon filament market is stabilizing and observing consolidation, with large stability and small movements, and prices slightly rising. The supply and demand of upstream raw material caprolactam are temporarily tight, leading to price increases; There is currently no significant improvement in downstream demand, and manufacturers are following up on demand from multiple parties. The trading atmosphere on the market is flat, and businesses lack confidence in the future market. The industry’s operating rate remains stable, with little change in on-site supply. The inventory levels of various manufacturers are average, and inventory pressure is not significant. Overall, as costs continue to rise and demand remains weak, the price of nylon filament remains stable with small fluctuations and a slight upward trend.

According to the Commodity Market Analysis System of Shengyi Society, the market price of nylon filament slightly increased in August. As of August 30, 2024, the price of nylon filament DTY (premium product; 70D/24F) in Jiangsu region is 18680 yuan/ton, an increase of 40 yuan/ton from the beginning of the month, with a monthly increase of 0.21%. Nylon POY (premium product; 86D/24F) is priced at 16300 yuan/ton, an increase of 25 yuan/ton from the beginning of the month, with a monthly increase of 0.15%. The price of nylon FDY (premium: 40D/12F) is reported at 19725 yuan/ton, which is the same as the price at the beginning of the month.

Raw materials remain stable and gradually strengthen

In August, the fundamentals of the nylon filament raw material caprolactam market improved, with stable and strengthening cost support. Supply and demand were temporarily tight, and prices rose slightly. On August 30th, the benchmark price of caprolactam in Shengyi Society was 12828.33 yuan/ton, an increase of 0.55% compared to the beginning of this month (12758.33 yuan/ton).

Supply and demand: In August, the overall supply of nylon filament market remained stable. During the month, most of the nylon filament market equipment operated stably, while some manufacturers reduced their equipment load due to increased inventory. At present, the daily production rate of nylon filament market is around 8.4%. Good support from the demand side is difficult to find, the speed of on-site cargo flow has slowed down, trading activity is average, and market confidence is insufficient.

Future forecast

In terms of raw material caprolactam, the bottom support for caprolactam prices from the cost side is becoming stronger, and the supply of caprolactam in the market may remain relatively normal. Downstream polymerization factories urgently need to purchase. In September, the traditional peak season for textiles is coming, and the trading atmosphere will improve. It is expected that the caprolactam market will mainly consolidate next month. Therefore, it is expected that the cost side support for nylon filament will remain stable and strong next month.

At present, the overall operating rate of the nylon filament market is relatively high, and the supply on site is relatively sufficient. However, some manufacturers’ shipments are weakening, and their equipment will stabilize in the later stage. Therefore, it is expected that the market supply will remain stable next month.

In September, downstream market demand is expected to improve, with stronger demand for raw materials and better support from the demand side. It is expected that downstream manufacturers of nylon filament will have a stable, moderate, and strong demand for nylon filament in September.

Overall, the cost side caprolactam market is expected to remain relatively stable, while the cost side support for nylon filament is becoming stronger. The weak demand side is expected to change. Business analysts predict that the nylon filament market in September will mainly follow the stable and strong operation of raw material consolidation, with market prices expected to rise slightly.