Nylon POY prices have traced a wide volatility curve over the past year, but entering July 2026, the market appears locked in a quiet stalemate.
Mid-Range Hovering: The Equilibrium of Supply-Demand Tug-of-War
As of July 9, the benchmark price of nylon POY stabilized at 13,625 RMB/ton, down merely 0.18% from the start of the month, with daily changes flat. On an annual basis, 13,625 RMB sits squarely between the low of 11,300 RMB and the high of 16,950 RMB—slightly below the midpoint of 14,125 RMB. This implies the current price is neither a bargain bottom nor a peak warning, but rather a fragile equilibrium reached between upstream cost support and downstream demand weakness.
Notably, the average price over the past year was 12,809.43 RMB, meaning the current level is about 6.4% above the mean. This suggests that, unlike some bulk polyester varieties, nylon POY has not fallen below cost lines. The underlying support comes from the raw material side—caprolactam prices remain relatively firm, squeezing profits in the polymerization and spinning stages and strengthening producers' willingness to hold prices.
Chain Transmission: The Double Squeeze of Weaving Utilization and Inventory Cycles
From a chain transmission perspective, the price stagnation of nylon POY reflects contradictions at two levels.
Upstream, caprolactam, the direct raw material for nylon, imposes a hard cost constraint. In the first half of 2026, international crude oil fluctuations transmitted to pure benzene, affecting caprolactam production costs. Currently, caprolactam prices are in the mid-to-upper range of the year, providing a floor for nylon POY—even if downstream buying sentiment is weak, mills are reluctant to concede margins.
Downstream, weaving mill operating rates in Jiangsu and Zhejiang experienced a seasonal decline at the end of Q2. Nylon filament is mainly used in sportswear, outdoor gear, and high-end underwear fabrics, where export orders under European and US inflationary pressure show a "stable volume, falling price" pattern. Brands prefer destocking over replenishing, lengthening procurement cycles for nylon POY, with traders adopting a "order-based, fast-in-fast-out" strategy.
This tug-of-war has flattened nylon POY prices for nearly a month. However, historical data shows that once this balance is broken, volatility tends to be sharp—the amplitude exceeded 50% in the previous year, indicating high sensitivity to sudden events.
Regional Industrial Cluster Observations: Divergent Responses in Fujian and Zhejiang
From a regional cluster perspective, the two major nylon production hubs—Changle in Fujian and Xiaoshan in Zhejiang—show divergent strategies.
Changle, which focuses on nylon filament for civilian use, tends to adopt "production cuts to support prices" during stalemates. Some mills reduced operating rates to around 70% by late June to curb inventory buildup.
In contrast, Xiaoshan and surrounding areas emphasize differentiation. Mid-sized nylon plants are increasing the output of nylon 66 and functional nylons (e.g., antibacterial, moisture-wicking) to capture niche customer segments as conventional POY margins thin.
This strategic divergence hints at the industry's future direction: when bulk varieties hit a price standstill, technological barriers and product customization become the key to breakout.