The benchmark price of nylon POY stood at 13,650 yuan per ton at the end of June, down 5.86% from the start of the month. This decline is not an isolated event but the second notable correction this year. According to industry public data, the current price sits at the midpoint of the one-year range, yet remains nearly 7% above the annual average of 12,779 yuan per ton. This suggests that if raw material cost support weakens or downstream orders remain sluggish, further downside is possible.
Drivers Behind the Price Decline: Cost vs. Demand
The primary raw material for nylon POY is caprolactam, whose price trajectory directly determines the cost floor for nylon products. Since the start of the year, caprolactam has experienced a pattern of initial gains followed by losses, influenced by crude oil volatility and new capacity releases. Nylon POY prices have retreated from around 14,500 yuan per ton at the start of the year to current levels, reflecting not only lower raw material costs but also the inability of end-user demand to keep pace with capacity expansion.
Downstream, nylon is mainly used in sportswear, underwear, hosiery, and some industrial textiles. In the first half of 2026, domestic apparel retail growth slowed, while export orders were dampened by high overseas inventories and cautious restocking. This demand-side lethargy has prevented nylon POY prices from gaining upward momentum, even as they sit in the middle of the annual range.
Industrial Cluster and Supply Chain Response
Traditional nylon clusters in Xiaoshan (Zhejiang) and Wujiang (Jiangsu) are facing downward pressure on operating rates. Many small and medium-sized spinning mills have proactively reduced capacity to manage rising finished product inventories and shrinking margins. Larger producers are adopting a 'defend price, not volume' strategy, using maintenance shutdowns or production curbs to stabilize market expectations.
Notably, while current nylon POY prices are about 20% above the one-year low of 11,300 yuan per ton, average industry margins have narrowed from 500-600 yuan per ton at the start of the year to less than 200 yuan per ton. Should prices continue to fall, some high-cost capacity may exit, providing a temporary floor for prices.
Implications for Buyers and Exporters
For fabric buyers, the current price level offers a short-term locking opportunity, but caution is warranted regarding raw material uncertainty. Caprolactam still has a high import dependence, and international oil prices or exchange rate fluctuations could quickly alter cost expectations. Exporters face a more complex situation, with overseas clients becoming more price-sensitive and RMB exchange rate volatility adding to quotation difficulties.