further decline in NFY plants’ operating rate in late April

There have been worries about further decline in NFY plants’ operating rate in late April. However, regarding the observation since end-Apr, low-end NFY and nylon 6 DTY plants with heavy inventory pressure have already cut their run rate to enough low rate. It means the risk of further reduction in NFY production has been released out almost.

It is difficult for NFY plant operating rate to drop further in May. At the same time, NFY inventory may still accumulate. But when upstream CPL and nylon 6 chip prices increase, it will also help liquidate NFY inventory to some extent. By early May, raw material inventory in downstream sectors is still heard at low rate, and this situation needs to be further observed and verified.