Nylon 6 chip: new capacities bring pressure

The pressure in nylon 6 chip market came earlier than CPL. Before the National Day holiday, insiders held bearish outlook for the entire industry in October, and their restock for chip was conservative. After the holiday, when chip prices rose rapidly with CPL, the buyer actively followed up because their raw material inventory was insufficient, and the effective transaction price of chip was also gradually pushed up.

Since mid-October, benzene had weakened, CPL market gradually stabilized, while new nylon 6 devices were put into production one after another, and downstream demand has not recovered evidently. A number of factors have accelerated the shift in market expectations for polymer market again, and buyers returned to be cautious in chasing highs.

After the increase of 300-500yuan/mt in conventional spinning (CS) chips, the effective transaction has been significantly reduced.