The benchmark price of nylon DTY reached 16,120 RMB/ton on July 24, up 1.77% from the beginning of the month. This seemingly modest increase occurred against a backdrop of persistent cost pressure from raw materials and lackluster downstream demand. The Texcircle editorial team believes these figures reveal an intensifying tug-of-war between upstream and downstream players in the nylon supply chain.
Price Position: Subtle Signals from the Mid-Range
From an annual perspective, the current price of 16,120 RMB/ton sits slightly below the mid-point of the year's range—the low was 13,560 RMB/ton and the high 18,960 RMB/ton, with a median of 16,260 RMB/ton. The price is 2,840 RMB/ton below the peak and 2,560 RMB/ton above the trough, placing it in a 'middle ground' that demands careful judgment from buyers.
Notably, despite zero daily change, the 1.77% monthly gain deserves attention. The annual average price for nylon DTY is only 15,104.70 RMB/ton, meaning the current price is about 6.7% above the mean. This suggests a gradual upward shift in pricing rather than an isolated spike.
Cost Driver: The Hard Pass-Through from Caprolactam
Upstream raw materials—caprolactam and nylon chips—remained strong through mid-to-late July. Spot caprolactam prices have breached the 13,000 RMB/ton mark, with some producers even suspending sales. This rigid cost push is the primary driver behind the latest nylon DTY price increase.
From an industry logic standpoint, cost accounts for over 80% of nylon DTY's price formation. Once raw material prices rise by more than 5%, downstream DTY prices almost inevitably follow. The question is whether downstream weaving and apparel sectors can absorb this cost increment.
Demand Side: Weaving Operating Rates Cap the Upside
In contrast to cost strength, demand remains weak. July is a traditional off-season for textiles. The comprehensive operating rate of water-jet looms in Jiangsu and Zhejiang has dropped from 75% in June to below 70%. Many small and medium-sized weaving mills have started rotating shifts or cutting production due to insufficient orders, purchasing nylon DTY only for immediate needs with little willingness to build inventory.
This 'strong raw material, weak demand' dynamic means the upside for nylon DTY prices is heavily constrained. Should raw material prices soften, the risk of a price correction would quickly materialize. The Texcircle editorial team expects nylon DTY to trade in a narrow range of 15,800-16,300 RMB/ton until at least mid-August.
Regional Industrial Clusters: Divergent Responses in Fujian and Zhejiang
Looking at industrial clusters, the Changle area in Fujian is a core hub for nylon filament and DTY processing. Local companies report a notable acceleration in raw material procurement, but finished product inventories are also rising. In contrast, weaving mills in Xiaoshan and Shaoxing, Zhejiang, are more cautious, preferring a 'produce-on-order' approach and avoiding inventory buildup during the off-season.
This divergence reflects differing expectations for future demand across the supply chain. Upstream processors are betting on Autumn/Winter orders to revive demand, while weavers are more pragmatic, waiting for confirmed orders from brand owners before committing to purchases. Such disagreement itself is evidence that a clear price trend is unlikely in the near term.