In mid-June 2026, the Haian nylon filament yarn market showed clear signs of price softening. POY86D/24F was quoted at 13,700 CNY/ton and DTY70D/24F at 15,600 CNY/ton, both down from earlier highs, with sellers explicitly stating prices were negotiable. This shift is not an isolated event but the result of combined upstream cost transmission and downstream demand adjustments.
Cost and Supply-Demand Logic Behind the Softening
The direct driver of the nylon filament yarn weakness came from the raw material side. Caprolactam and PA6 chip prices experienced a sustained decline from late May to early June, weakening the cost support for nylon filament. Industry convention suggests that for every 500 CNY/ton drop in raw materials, the theoretical cost reduction for nylon POY is about 300-400 CNY/ton. The current POY quote has fallen roughly 200 CNY/ton from early May, not fully reflecting the raw material decline, implying room for further price adjustments.
On the supply-demand front, the Haian and surrounding northern Jiangsu weaving clusters entered the traditional off-season in June. Some small and medium-sized water-jet loom factories reduced operating rates from 85% to about 75% due to order gaps, causing a phased contraction in rigid demand for nylon filament. Meanwhile, nylon producer inventories rose from low levels to 15-20 days, increasing destocking pressure and pricing flexibility.
Sentiment Divergence Reflected in Bull-Bear Scores
According to industry bull-bear scoring, both nylon POY and DTY received -1 points, classified as 'generally bearish,' while FDY was not quoted and rated neutral. This scoring structure conveys several key messages:
- Bearish pressure is concentrated in standard specifications (POY and DTY), while differentiated specs (like FDY) are less affected, indicating stable demand from end-use apparel fabrics for fine denier yarns.
- The phrasing 'negotiable for actual orders' suggests sellers are not forcing price support but seeking volume through pricing flexibility, consistent with the 'apparent stability, actual decline' pattern typical of June.
- As a major nylon filament distribution hub, Haian's price signals often lead downstream markets like Shengze and Changle by 1-2 weeks, warranting caution about potential transmission to greige fabric pricing.
Impact on Downstream Procurement and Foreign Trade Orders
The price softening presents distinct opportunities and risks for different chain segments.
- For nylon fabric weavers, lower raw material costs improve processing margins, provided greige fabric prices hold firm. Current greige prices remain relatively stable, and weavers locking in POY below 13,700 CNY/ton could see margins expand by 2-3 percentage points.
- For foreign trade firms, June-July is the peak confirmation period for autumn/winter orders from Europe and the US. The price softening may prompt some brand buyers to delay orders in anticipation of lower prices, creating a negative feedback loop. However, if prices bottom by mid-July, it could provide a cost advantage for exporters, boosting quote competitiveness.