Different business strategies

The fierce price competition in nylon filament market started in May and lasted until the end of August with no obvious signs of relief. In this nearly 4 months of gloomy demand, Fujian enterprises insisted on high operating rate for at least 2.5 months or more to gain more market share quickly with the advantage of unit consumption, regardless of losses. Even during July-August, when the temperature hit a record high and the power cuts around the nation were strict, the running rate of Fujian nylon NFY plants was no less than 70%, which was significantly higher than that of Jiangsu and Zhejiang.

Towards the end of August, as purchase from local downstream fabric mills increased slightly, Fujian NFY plants pulled up the run rate in time to seize the market again with good product quality and price advantages. At the same time, most small factories in Jiangsu and Zhejiang could not take this opportunity, even though more buyers came to inquire, as they had shut or cut production earlier and could not give a better price. Therefore, they have no such high enthusiasm to ramp up operating rate