The price of nylon POY is undergoing a silent decline. According to publicly available industry data from July 1, 2026, the benchmark price has fallen to 13,650 CNY/ton, down 5.86% from a month earlier and over 19% from the year-high of 16,950 CNY/ton. This figure not only signals a significant compression of profit margins in the nylon filament segment but also casts a shadow over the entire chemical fiber supply chain regarding supply-demand imbalance.
Price Coordinates: A Dangerous Signal Below the Median
From an annual statistical perspective, the current price of 13,650 CNY/ton is below the annual median of 14,125 CNY/ton, with a buffer of about 2,350 CNY from the year's low of 11,300 CNY/ton. However, it is noteworthy that this price level is approaching the 12-month average of 12,785.25 CNY/ton, suggesting that market sentiment is shifting from 'wait-and-see' to 'pessimistic.'
Comparing the price trend from the same period last year, nylon POY has been on a downward trajectory since July 2025 (14,500 CNY/ton), with only brief rebounds. This sustained price contraction directly reflects the loosening of upstream caprolactam cost support and the contraction of orders in downstream weaving, apparel, and other end-use sectors. For polymerization and spinning companies in the nylon chain, current prices are near the break-even point, and some small and medium-sized factories may face production cuts or shutdowns.
Industry Transmission: A Demand Vacuum from Raw Materials to End Users
The decline in nylon POY is not an isolated event. In the chemical fiber family, varieties such as polyester and viscose are also under pressure from weak demand. However, due to its higher added value, nylon's price fluctuations are often more sensitive. The core driver of this round of decline comes from the 'de-stocking' cycle in the end-use apparel and home textile markets.
- End-use brands have continuously reduced procurement orders from the second half of 2025 to the first half of 2026, leading to low operating rates in the weaving sector and a decline in rigid demand for nylon POY.
- At the same time, the continued release of upstream caprolactam capacity has led to an oversupply of raw materials, weakening cost support.
- In terms of foreign trade, the restocking demand from European and American markets has not been as strong as expected, with high inflation and consumption downgrades suppressing demand for mid-to-high-end nylon fabrics.
This means that even though current nylon POY prices are at a relatively low level, factories remain cautious in taking orders because of the prevalent 'buy on rising, not on falling' mentality in the industry chain. The continuous price decline has instead intensified downstream wait-and-see sentiment, forming a negative feedback loop of 'the more it falls, the less people buy.'
Practical Recommendations
For Buyers - **Staggered purchasing, avoid bottom-fishing mentality**: The current price is near historical mid-to-low levels, but further declines are possible. It is recommended to split procurement plans into 2-3 batches, with intervals of 1-2 weeks, to spread cost fluctuation risks. - **Monitor caprolactam price trends**: The pricing of nylon POY is fundamentally linked to raw material costs. If caprolactam prices stabilize or rebound, the downside for nylon POY will be capped. It is recommended that buyers use caprolactam prices as a leading indicator. - **Lock in basis for long-term orders**: For textile companies with stable demand, consider signing floating price contracts with suppliers based on the 'benchmark price + fixed processing fee' model to lock in processing margins and avoid raw material price volatility risks.
For Factories - **Proactively cut production, control inventory levels**: Before a clear demand inflection point emerges, maintaining high operating rates will only increase finished product inventory pressure. It is recommended to reduce operating rates to below 70% and prioritize existing inventory liquidation. - **Develop differentiated products, avoid price red oceans**: Conventional nylon POY is highly commoditized, making price wars inevitable. Factories should increase R&D investment in functional and differentiated nylon filaments (e.g., antibacterial, moisture-wicking, recycled nylon) to capture higher premium margins. - **Expand into non-apparel applications**: Nylon is finding growing use in industrial fabrics (e.g., airbags, conveyor belts) and outdoor equipment (tents, backpacks). Factories should proactively engage with these niche markets to reduce dependence on the apparel sector.
The current nylon POY market is at a critical crossroads. If demand does not materially improve in the second half of the year, prices may further decline to the 12,000 CNY/ton range. However, if there is an unexpected production cut in raw materials or a super-expected recovery in end-use consumption, this downturn could be the window to position for the next rebound. Texcircle will continue to track the dynamics of this industry chain.