Resurgence of COVID-19 cases affects downstream demand

However, the resurgence of pandemic cases around several regions in China had hit the market with a cold snap. Although it had little direct impact on nylon industry, market’s expectations toward China domestic demand in the peak season weakened. Downstream stocking tended to be cautious instead.

In addition, the number of new cases surged international in August, which caused further worry about the delivery of end user’s product and the impact on demand. Therefore, it hindered the negotiation of export orders during the peak season. The pandemic has hindered the negotiation of mid and downstream orders in August, which has increased negative expectations of China domestic and export demand.