Nylon POY Prices Slip into Mid-Range, Exposing Chain-Wide Pressure

Nylon POY prices have continued to weaken in the second quarter of 2026. As of June 5, the benchmark price dropped to 14,000 CNY/ton, a daily decline of 1.06% and a monthly decrease of 3.45%. This level is now below the annual median of 14,125 CNY/ton, with a gap of 2,700 CNY/ton from the year's low of 11,300 CNY/ton and a retreat of nearly 3,000 CNY/ton from the peak of 16,950 CNY/ton.

Price Range and Market Signals

The annual price range for nylon POY spans 5,650 CNY/ton, with the current level sitting in the lower mid-range. The annual average price stands at 12,680.05 CNY/ton, about 1,320 CNY/ton below the current price, indicating that the overall price center of gravity over the past year was low, and the recent rebound has not been sustained. Although the daily decline of 1.06% falls within normal fluctuation, the monthly drop of 3.45% exceeds seasonal adjustment ranges and warrants attention from all chain participants.

This price movement reflects a combination of ample caprolactam supply upstream and insufficient operating rates among downstream weaving mills. Caprolactam, the direct raw material for nylon POY, saw a significant correction during April-May 2026, weakening cost support. Meanwhile, downstream processes such as warp knitting and circular knitting have experienced limited order growth, with mills showing low willingness to replenish inventories, resulting in sluggish spot trading for nylon POY.

Chain Transmission and Regional Responses

The impact of falling prices is asymmetric across the chain. For nylon chip producers, current POY prices are approaching breakeven levels, potentially forcing small and medium-sized polymerization units to cut production or schedule maintenance. Downstream, major nylon weaving clusters like Shengze and Changle are seeing rising grey fabric inventories, prompting mills to adopt a cautious "buy-as-needed" approach with short-term orders, further squeezing POY pricing power.

Notably, nylon POY prices have hovered around the annual median for about two months, indicating a stalemate between bulls and bears. If downstream demand fails to recover beyond expectations during the traditional off-season (June-July), prices may continue to test the annual low. Conversely, if upstream raw material prices stabilize and rebound, or if seasonal replenishment orders emerge from end-use sectors like apparel and home textiles, a temporary bottom may form around 14,000 CNY/ton.

Practical Recommendations

For Buyers - Given the current lower mid-range price but ongoing monthly decline, adopt a phased procurement strategy to avoid large one-time price locks. - Monitor caprolactam price trends; if upstream shows signs of stabilization, consider increasing safety stock by 1-2 weeks. - Negotiate floating pricing mechanisms with suppliers to partially shift price risk upstream.

For Exporters - When quoting overseas clients, update base prices weekly and specify validity periods to hedge against dual fluctuations in exchange rates and raw material costs. - Leverage current low prices to negotiate quarterly or semi-annual framework agreements with long-term customers, locking in relatively favorable costs. - Monitor nylon POY import price changes in Southeast Asian markets; if the domestic-overseas price gap widens, explore re-export opportunities.