In the past few years, nylon has been subject to factors such as raw material jams, and the industry’s output growth has lagged far behind that of polyester. The sales gap between nylon and polyester is getting wider and wider. But in terms of performance, nylon is far better than polyester in terms of wear resistance and dyeability. The core problem behind its slow development is that downstream spinning companies do not have access to upstream raw materials, and upstream companies basically have no downstream spinning facilities. , but looking to the future, the industry is undergoing fundamental changes. The substantial expansion of leading companies and the accelerated integration process will reshape the upstream, stimulate rapid growth in downstream demand, and even subvert the competitive landscape of the entire industry.
Investment 12 billion
Taihua New Materials Nylon New Materials Integrated Project Starts
On January 8, 2022, Taihua New Materials ushered in a good start to the new year – Taihua New Materials’ green multi-functional nylon new material integration project started grandly! It is understood that the Taihua New Materials green multi-functional nylon new material integration project only took 70 days from signing the contract, obtaining the land to starting construction. The total planned investment of the project is 12 billion yuan. After the project is fully put into operation, it will have an annual output of 100,000 tons of PA6 It has the production capacity of recycled silk, annual output of 120,000 tons of PA66 spinning, annual output of 200,000 tons of PA6 polymerization and spinning, annual output of 600 million meters of gray fabrics, and annual output of 200 million meters of finished fabrics.
I lost my temper!
Toray PA66 has a maximum price increase of 2,800 yuan/ton!
As a bellwether for the nylon industry, Taihua New Materials’ re-expansion of production also shows that the nylon industry still has room for substantial growth. Foreign nylon industry giants have also recently issued price increase letters for related products.
Toray announced that starting from January 2022, nylon 6 (long fiber), nylon 66 (long fiber), nylon BCF yarn (long fiber), polyester yarn (long fiber), cotton (short fiber) and polyester Long fiber non-woven fabrics have undergone price adjustments (price increases), with an increase of 20-50 yen/kg (approximately 1122-2804 yuan/ton).
Toray Group explained: According to the current price trends of fiber raw materials, whether it is caprolactam, the raw material for PA6, hexamethylenediamine, the raw material for PA66, or PTA and ethylene glycol, the raw materials for polyester fiber, these raw materials have been in high demand since the beginning of this spring. High and rising. Due to the increase in demand brought about by the global economic recovery and the supply and demand pressure of oil-producing countries to curb production increases, crude oil prices are currently unable to eliminate the problem of high prices. In terms of synthetic fiber raw materials, domestic suppliers are also likely to further improve price.
In addition, against the background of the serious shortage of transportation containers, rising domestic sea freight rates in Japan, and rising energy prices such as auxiliary materials and fuels, the high cost will not be improved in the future.
Specific product increases are as follows:
Not only Toray, major manufacturers such as Kuraray and Toyobo have also recently announced price increases for nylon or polyester products in early 2022. This price increase has also affected a series of products such as engineering plastics, polyurethane, and special rubber.
It is understood that the domestic PA66 market will increase significantly in 2021, and data shows that the PA66 price range frequently exceeds the 40,000 yuan mark. As of December 31, 2021, the average price quoted by companies for PA66 medium-viscosity injection molding grade samples was around 36,500 yuan/ton, an increase of 24.15% from the price level at the beginning of the year.
PA66 price increase
Domestic manufacturers have also accelerated the layout of PA66
It is understood that China’s demand for nylon products may account for more than half of the total nylon production and consumption in the Asia-Pacific region, and is expected to become the world’s largest nylon market. According to industry think tank data, global PA66 consumption will reach 3.8 million tons by 2022, of which China’s consumption will reach 800,000 tons, with a compound growth rate of approximately 9.8%.
In recent years, the localization of adiponitrile, the raw material for “stuck necks”, has turned around. In 2020, Huafon Group’s PA66 integrated project and annual output of 300,000 tons of adiponitrile project held a groundbreaking ceremony in Chongqing. This is my country’s first independently developed industrial production technology for adiponitrile, and it is the first time it has been applied to a 300,000-ton project. Huafeng has built its first adiponitrile unit with an annual output of 50,000 tons and achieved full production and stable operation; on January 4, China National Chemical stated on the investor interaction platform that the company is fully accelerating the engineering and planning of the adiponitrile project Trial production, the overall cumulative completion progress of the project has reached more than 97%.
China National Chemical Corporation is the parent company of China Tianchen Engineering Corporation. On August 19, 2019, the first adiponitrile project in China – the Tianchen Qixiang 1 million tons/year nylon new material industry jointly owned by China Tianchen Engineering and Qixiang Tengda.The foundation was laid. The industrial base is located in Zibo Qilu Chemical Industrial Zone and contains an adiponitrile production unit with an annual output of 500,000 tons. Upon completion, it is expected to become the first industrial adiponitrile production base in China. The project uses the company’s independently developed butadiene-based synthesis of adiponitrile technology, which is the first patented technology in China with independent intellectual property rights. It was originally planned that the first phase of the project with 200,000 tons of adiponitrile would be put into production at the end of 2021.
Because of this, domestic companies are accelerating their deployment of PA66. At present, with the rapid development of the nylon industry in recent years, the upstream and downstream industrial chains of nylon 6 have been connected, the industrial layout is becoming increasingly perfect, and the market structure has basically taken shape. The nylon industry has broad development prospects. It is expected that global production capacity will exceed 10 million tons by 2025, with the main production capacity concentrated in China.
And when the planned production capacity of PA66 is put into production as scheduled, can the market dividend period continue?
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