Nylon POY Price Falls to Mid-Range of Year, Under Dual Pressure from Raw Materials and Weak Demand

The benchmark price of nylon POY settled at 13,650 CNY/ton at the end of June, down 5.86% from the beginning of the month, pulling the price to the midpoint of its one-year range. According to annual statistics, the lowest price over the past year was 11,300 CNY/ton, and the highest was 16,950 CNY/ton. The current level is 3,300 CNY/ton below the peak and only 2,350 CNY/ton above the trough, indicating a delicate balance between supply and demand.

Price Drivers: Dual Pressure from Costs and Demand

The direct causes of this price decline are twofold. On the raw material side, caprolactam prices weakened during the second quarter, significantly reducing cost support. The release of new caprolactam capacity has created a loose supply environment, directly compressing profits in the downstream polymerization segment and transmitting pressure to the nylon POY chain. Meanwhile, downstream weaving mills have shown weak purchasing willingness, as final orders for apparel and home textiles have not recovered as expected, slowing the destocking of POY. Industry data shows that loom utilization rates in the Jiangsu-Zhejiang region fell by about 3 percentage points month-on-month in June, further confirming weak demand.

From a price structure perspective, the current level of 13,650 CNY/ton is at the midpoint, but the annual average is only 12,782 CNY/ton, indicating that prices were often lower during the second half of 2025 and early 2026. The top deviation of 3,300 CNY/ton shows a significant drop from the peak, and market sentiment has shifted from optimism to caution.

Industry Impact: Profit Redistribution Along the Chain

The impact of the price decline varies across the supply chain. For nylon polymerization companies, lower raw material costs help relieve some pressure, but the simultaneous drop in POY selling prices narrows processing margins. Some small and medium-sized polymerization plants may face production cuts or maintenance to cope with inventory buildup. For downstream weaving and texturing mills, lower raw material prices mean reduced procurement costs, but insufficient end orders discourage them from building inventories, leading to a just-in-time purchasing strategy.

It is worth noting that the current price is approaching the break-even point for some producers. If the peak season in the third quarter fails to materialize as expected, prices may test below the annual average. Conversely, if orders pick up and trigger concentrated restocking, a temporary rebound is possible. However, historically, July and August are typically off-seasons for the textile industry, making upward price movement more difficult.

Practical Recommendations

For Buyers - Current prices are at the midpoint; purchase based on actual needs and avoid bulk stocking in anticipation of the peak season, as third-quarter demand remains uncertain. - Monitor caprolactam price trends; if raw material costs continue to decline, POY prices may have further room to fall, so consider delaying large orders. - Sign short-term contracts with suppliers to lock in current low prices while retaining price adjustment mechanisms to cope with market fluctuations.

For Exporters - Overseas demand for nylon products is diverging: European and American orders favor high-end differentiated products, while Southeast Asian markets focus on cost-effectiveness. Adjust product structures accordingly to avoid price wars in commodity-grade items. - Use the current low raw material window to negotiate forward orders with customers, locking in profit margins. - Pay attention to the impact of exchange rate fluctuations on export quotations, and include currency fluctuation clauses in contracts to reduce settlement risk.