When upstream raw material prices rose another 400 yuan per ton within a week while downstream weaving mills were still struggling to destock conventional nylon fabrics, the nylon filament supply chain in Shengze and Jiaxing entered a typical cost-push price adjustment phase. During the week from August 31 to September 6, domestic caprolactam prices climbed to 13,450-13,550 yuan per ton, and semi-dull nylon chips followed suit, reaching 13,900-14,000 yuan per ton. Nylon filament prices rose accordingly, but trading volumes did not expand. This pattern of price increases without volume growth usually indicates that end-user demand has not genuinely recovered, and the upward price movement is more a result of cost pressure than market strength.
Cost-Demand Mismatch
On the raw material side, the renewed rise in caprolactam prices is not an isolated event but a continuation of fluctuations in crude oil and pure benzene prices transmitting down the chain. Chip prices rose by about 400 yuan per ton from the previous week, directly pushing up the production costs of nylon filament. However, downstream fabric markets have not given a synchronized positive response—demand for conventional nylon taffeta was mediocre, with 70D/24F nylon 6 FDY seeing a notable slowdown in demand, even though prices have climbed to 15,300-15,400 yuan per ton. The sluggish trading suggests that weaving mills have limited acceptance of high-priced raw materials and are purchasing only on a need-to basis.
This mismatch between costs and demand is concentrating profits upstream while squeezing margins for both spinning and weaving segments in the middle and lower reaches of the chain. For nylon filament producers in Shengze and Jiaxing, rising raw material costs can be partially passed on to product prices, but if downstream orders remain insufficient, price hikes will only further dampen purchasing intentions, creating a deadlock of 'prices up, volume down.'
Highlights in Differentiated Products
Despite overall weak demand, several differentiated products have shown structural strength. Sales of 30D/1F bright nylon trilobal yarn increased, 160D nylon air-textured yarn traded reasonably well, and demand for 40D/24F nylon FDY fully dull yarn grew, mainly used for water-jet woven dull high-density nylon taffeta, with downstream consumption rising periodically. The common feature of these products is that they serve relatively niche applications and offer higher added value for end products, making them less affected by the weakness in conventional fabrics.
Notably, 70D/24F nylon 6 FDY fully dull yarn performed averagely, priced at 16,100-16,300 yuan per ton, used for water-jet woven fully dull polyester taffeta. The demand divergence between 40D and 70D dull yarns reflects differing market conditions for fabrics of various thicknesses. Meanwhile, 20D/1F and 30D/1F semi-dull nylon yarns saw sluggish sales with stable prices, and nylon 66 DTY, due to its limited application scope, is already on the verge of having prices without buyers. These divergent signals remind enterprises that relying on commodity-grade products will make profitability increasingly difficult, and product structure adjustment is an urgent priority.
Ripple Effects in the Industrial Cluster
Shengze and Jiaxing, as important domestic hubs for nylon filament production and weaving, are highly sensitive to raw material price fluctuations. This week, some large producers and traders saw a slight increase in orders for nylon-blended fabrics, but overall industry demand has declined compared with last year, mainly due to insufficient fabric orders, which directly impacted nylon filament consumption. This means that even sporadic replenishment orders cannot reverse the annual demand downturn.
With upstream raw material costs remaining firm and upward, while downstream fabric orders are weak, this 'squeezed from both ends' situation is testing the bargaining power of each link in the chain. For spinning mills, the timing of raw material purchases and inventory management have become critical; for weaving mills, how to balance rising costs against insufficient orders will determine their short-term profitability. It is expected that nylon filament prices may continue to adjust upward next week, but whether the increase can be absorbed by downstream sectors remains to be seen, depending on the fabric market's acceptance level.