CPL downstream demand goes downhill

Entering May, the downstream of nylon 6 CS chip has deteriorated. Quite a number of large modified plastic (MP) plants reflected unanticipated decline in May orders, and their operating rates were mostly going downhill. In fact, before the Labor Day holiday, some medium-small-sized MP plants already proclaimed perishing orders and lower run rates, but at that time, large MP plants' performance was relatively healthy. Hence, the orders in late Apr might were just structurally switched to more advantageous large MP plants. But as poorer sales spread to large plants since May, it has verified the downhill in rigid demand in the modified plastic industry.

Another downstream consumption filed, nylon 6 HS chip, saw the rigid-demand consumption heading south month-on-month, though the reduction was not yet evident as plastics. In May, textile filament sector was weakening continuously. Medium-low-end POY and DTY demand was diminishing in May, as the represented Hai'an filament plants cut production largely. Large NFY plants in Zhejiang and Fujian maintained their run rates, while there were no additional orders.