The price of nylon POY has experienced a dramatic swing over the past year. From June 30, 2025, to June 30, 2026, the price bottomed at 11,300 CNY/ton and peaked at 16,950 CNY/ton, a range of nearly 50%. As of June 30, 2026, the benchmark price settled at 13,650 CNY/ton, down 5.86% from the beginning of the month and approximately 19.5% below the year-ago high. This price movement is not an isolated event but a microcosm of the tug-of-war across the chemical fiber supply chain.
Price Center Shifts Downward, Cost Pass-Through Stalls
Looking at the annual statistics, the current price of 13,650 CNY/ton sits just below the one-year median of 14,125 CNY/ton. The top-side gap is a substantial 3,300 CNY/ton, while the bottom-side gap is only 2,350 CNY/ton. This means the price has more room to rise from the current level than to fall, yet the market remains under pressure. More notably, the annual average price is only 12,782.17 CNY/ton, far below the current price, indicating that most of the past year saw prices in a lower range. The recent uptick has not broken the weak pattern.
Nylon POY's main raw material is caprolactam, which is heavily influenced by crude oil and pure benzene prices. Since 2025, international crude oil prices have shifted downward, and pure benzene prices have weakened correspondingly, reducing cost support for caprolactam. However, nylon POY prices have fallen more sharply, reflecting that end-user demand pressure is more severe than raw material pressure. Downstream sectors such as textiles and home textiles have seen sluggish order growth, and weaving mills are reluctant to build inventories, making it difficult for POY price increases to pass through.
Industrial Cluster Inventory Strains, Operating Rates Diverge
In East China, the main production region for nylon POY, particularly in industrial clusters like Yiwu and Xiaoshan in Zhejiang Province, inventories remain high at many enterprises. Some small and medium-sized polymerization and spinning companies have had to cut prices to generate cash flow, further depressing market transaction prices. In contrast, large integrated companies, with self-sufficiency in raw materials and scale advantages, maintain operating rates above 70%, while SMEs have seen rates drop to around 50%.
This divergence is clearly reflected in price discount transactions. According to publicly available industry data, spot transaction prices for nylon POY in East China in late June were generally 200-400 CNY/ton below the benchmark, with some small factories offering discounts exceeding 500 CNY/ton. This indicates that actual market transaction prices are lower than the benchmark, which primarily reflects quotes from leading companies rather than the true supply-demand balance.
Export Market Under Pressure, Structural Opportunities Emerge
Direct exports of nylon POY fell by about 8% year-on-year in 2025, mainly due to slowing demand in Southeast and South Asian markets. Textile and garment export growth in countries like Bangladesh and Vietnam has decelerated, slowing their procurement of upstream raw materials. However, exports of differentiated nylon POY varieties, such as high-tenacity POY and flame-retardant POY, grew counter-trend by about 12%, indicating structural opportunities in niche segments.
The prolonged price downturn is also forcing industry consolidation. Some SMEs lacking cost advantages have begun to voluntarily reduce output or switch production, which could further increase industry concentration. Historically, when nylon POY prices fall below the annual average cost line and remain at low levels for more than three months, it often signals that a bottom is near. Currently, prices are about 5% below the annual average cost and have been at low levels for nearly two months, with bottom signals accumulating.