It has to be said that even though the overall textile terminal environment is not particularly outstanding, the prices of some commodities are still like a wild horse running wild! Especially for nylon and spandex, the early growth rate has given many textile bosses “a headache”!
Recently, the nylon raw material giant has come to boost the market again!
Following the recent force majeure declaration for PA66, BASF has recently issued a price increase letter.
BASF announced that it will increase the price of raw materials caprolactam, nylon 6 and nylon 6/66 copolymer in North America. Starting from May 1, or as permitted by the contract, each of these three products will increase by 30 cents/pound (approximately equal to 4,300 yuan/ton).
Although BASF did not provide any explanation for the reason for the price increase, PT Company has previously reported that , prices have been on an upward trajectory since the beginning of the year. Nylon 6 prices increased 15 cents/lb in the January-February period as suppliers implemented the policies they announced at the end of the fourth quarter of 2020 on the basis of higher raw material prices and increased demand from the automotive and fiber/textile industries. increase. BASF also issued a price increase letter in April, announcing that the prices of PA6 and caprolactam would increase by 15 cents/pound (2,170 yuan/ton), and that of copolymers by 18 cents/pound (2,604 yuan/ton).
Industry insiders believe that prices may rise further in May as demand exceeds supply due to extreme winter weather along the Gulf Coast in February that shut down raw material and resin plants. Recently, the Ministry of Commerce has also implemented anti-dumping measures against imported nylon 6 chips originating in the United States, the European Union, Russia and Taiwan. Among them are engineering plastics giants such as BASF, LANXESS, DSM, etc.!
Preliminary discounts are cancelled, low prices are reserved
The nylon market has a rising atmosphere
Since the middle of last month, the upstream caprolactam market has started an upward trend. Recently, the upstream caprolactam in the nylon industry chain has increased significantly, and the overall cost side has supported it. obvious.
From the cost side, the cost support pressure has only increased. Affected by costs, nylon yarn manufacturers have an atmosphere of exploration, and there are many manufacturers. The prices are tentatively rising by 200-300 yuan/ton, and some manufacturers have canceled early discounts and are reluctant to sell at low prices.
The momentum is strong, and some nylon fabrics have become dark horses in sales
While the market focus of the upstream raw material end has gradually increased, the downstream demand of the nylon industry has also improved.
Since April, the overall operation of the textile fabric market has been relatively stable, and there has been no large-scale rush for goods and price increases. From the demand side, although the overall start-up remains normal and stable, the demand follow-up is slightly flat. Some customers determine production according to sales, and there are not many cautious follow-ups on new orders. Downstream customers are resistant to high-priced raw materials and remain optimistic about the market outlook. There is a bearish atmosphere, so there are certain constraints on the demand side. However, some nylon fabrics are gaining momentum and have become a dark horse in the fabric market.
“There is a factory that produces 380 and 400 matte nylon yarns all year round. The machine can operate up to 1,000 units. Some time ago, there were always people queuing up to get the goods. It is getting better this time. , you can get tens of thousands of meters at a time without waiting.” said a trader in Shengze area.
“380 and 400 matt nylon increased from 2.9 yuan/meter at the beginning of the year to 3.2 yuan/meter, and from 3.1 yuan/meter to 3.4 yuan/meter respectively. The market for this kind of fabrics The prospects are still very good,” said a textile boss.
As an exclusive fabric for autumn and winter products, nylon products have been enduring in the market. Now we are in the transition season between spring and summer. Nylon is used as sun protection The main fabrics for clothing have also seen seasonal demand. In recent years, the market for sun protection clothing has risen on a large scale. It is believed that this type of fabric will once again become the focus of the public after elastic fabrics. In addition, many of the orders from the weaving manufacturers mentioned by the above-mentioned traders are exported to foreign markets. Some manufacturers have already begun to stock down jacket fabrics. 380 and 400 matte nylon yarns are relatively high-end nylon yarns, which are high-quality fabrics for making down jackets. .
The price rise is due to Dongfeng, and manufacturers can stock up appropriately
The market situation this year is still quite special. Although the global economy is currently recovering slowly, the impact of the epidemic on the market has not dissipated, especially in countries with severe epidemics overseas. The blockade has not ended, ports have stagnated, and consumption has declined sharply year-on-year. , these are undoubtedly big negatives for the textile industry.
There are various signs that there are still no obvious signs of recovery in terminal demand, and many textile people still have pessimistic expectations for this year’s market. As a textile raw material, nylon still needs “Dongfeng” to achieve a high-price breakthrough. However, raw material prices are still strong in the short term, and manufacturers can stock up appropriately to prevent prices from continuing to rise in the future and production costs to be ruthlessly driven up! </p
