M O N T H LY R E P O R T

June 2021

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June Nylon Filament Yarn Market Report

1. Market Review
In June, nylon 6 textile filament market was gradually slipping with a weaker performance in HS chip market,
and it only ticked up mildly in end-June. Due to different demand among nylon filament varieties, price decline
for conventional product was larger than their feedstock even, while products with firmer demand were resistant.
In June, prices for conventional products had dropped by 300-500yuan/mt, with some larger around
800yuan/mt, and that for filament with better demand were steady or slipped 200-300yuan/mt.

1.1 Nylon 6 POY

China POY Price Trend and Profit Margin

yuan/mt Profit of POY (RHS) N6 HS chips SD POY 86Dtex/24F
21000 1400

19000 1100

17000 800

15000 500

13000 200

11000 -100

9000 -400

7000 -700
20-6-30 20-8-31 20-10-31 20-12-31 21-2-28 21-4-30 21-6-30

In June, medium-high-grade POY had followed down nylon 6 HS chip in early and middle of the month, and
ticked up slightly in end-June. Demand for conventional POY was thin and the pressure gradually built up. Prices
for high-end semi-dull 93Dtex/24F slipped from 17,000-17,300yuan/mt to 16,800-17,000yuan/mt, and then
ticked up to 17,000-17,300yuan/mt again by end-Jun, 6 months payment, short-distance delivered. Low-end
POY was affected by low-end spot HS chip market. Prices basically waved between 16,100-16,800yuan/mt, and
lifted to 16,600-16,800yuan/mt by end-Jun, 6 months payment, short-distance delivered.

The processing fee (margin over contract price of HS chip) for medium-high-end POY reduced further in June,
while cash flow of transactions in H1 June improved, as feedstock prices dropped. In general, the profit of POY
did not reduced compared with that in end-May, and some plants enjoyed better profit with good sales and
replenishment strategy.
CCFGroup Monthly Report June 2021

The actual margin of low-end POY was basically steady, as they moved almost in line with spot HS chip prices.
Some plants replenished HS chip from the bottom place intensively and enjoyed better margin.

1.2 Nylon 6 FDY

China FDY Price Trend and Profit Margin

yuan/mt Profit of FDY (RHS) N6 HS chips SD FDY 70D/24F
22000 800

500
19000
200
16000 -100

13000 -400

-700
10000
-1000

7000 -1300
20-6-30 20-8-31 20-10-31 20-12-31 21-2-28 21-4-30 21-6-30

In June, FDY producers had actively reduced the production for conventional FDY and switched to hot-sold
products. So the sales condition was evidently better than that of DTY and POY. Prices of FDY, especially some
hot-sold dull products, were quite firm and resisting. Prices of dull 20D/24F maintained firm at 26,300-
26,500yuan/mt, a few small lot deals higher, T/T cash, delivered. Sales of dull FDY 40D/34F, 30D/12F, 30D/34F
were still hot, and trading of dull flat 40D/7F was considerable, though its price waved larger than the former
ones, its slipped from 20,800-21,000yuan/mt to 20,400-20,500yuan/mt and then increased to around 20,600-
20,800yuan/mt, T/T cash, delivered.

Margin of dull FDY was still good, and as its prices were resistant, the margin was steady to higher than the
previous month. Conventional FDY prices were weaker but their decrease was also smaller than feedstock, so
the margin was slightly higher month-on-month.

1.3 Nylon 6 DTY

The trend of DTY was similar as that of POY. Demand for conventional DTY was thin and price appeared less
resistant. Discussions of high-end 70D/24F discussions lowered from 19,500-20,500yuan/mt to 19,500-
20,000yuan/mt, and inched up slightly to 19,700-20,300yuan/mt, 6 months payment, delivered. Buyers were
mostly on sidelines and they were very cautious to chase highs. DTY margin was maintained at relatively low
rate of end-May.
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CCFGroup Monthly Report June 2021

China DTY Price Trend and Profit Margin

yuan/mt Profit of DTY (RHS) N6 HS chips SD DTY 70D/24F
26000 1400

23000 1000

20000 600

17000 200

14000 -200

11000 -600

8000 -1000
20-6-30 20-8-31 20-10-31 20-12-31 21-2-28 21-4-30 21-6-30

1.4 Industrial filament and cord fabric

Price and profit of cord fabric for cars

yuan/mt Profit in Zhejiang and Jiangsu Profit in Shadong
33000 Price in Zhejiang and Jiangsu Price in Shandong 10000

30000 8000

27000 6000

24000 4000

21000 2000

18000 0

15000 -2000
20-6-30 20-8-31 20-10-31 20-12-31 21-2-28 21-4-30 21-6-30

Prices of nylon 6 cord fabric declined in line with feedstock market around mid-June. In other period of the
month, the market was basically steady. By end-June, tire cord was traded at around 30,500-31,500yuan/mt in
Jiangsu and Zhejiang, and that in Shandong lifted to around 30,500-31,000yuan/mt in Shandong, 6 months
payment, delivered.

II. Plant operation and inventory

2.1 Plant operation
In June, the average operating rate of NFY plants had maintained at 87% through the month. As of the end of
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CCFGroup Monthly Report June 2021

the month, in Zhejiang province, most NFY plants in Xiaoshan were running at 80-100%; plants in Jinhua and
Yiwu at 90%, a few at 100%, and that in Zhuji were around 70-90%, some higher at 100%. In Fujian, large plants
were running at 85-95%, some higher at 90-100%, some lower at 70-80%. Plants in Jiangsu were partly running
at 80-100%, a few slightly lower.

Nylon 6 Filament Yarn Plant Operation in China

% nylon 6 filament yarn
90

80

70

60

50

40

30

20
20-6-30 20-8-31 20-10-31 20-12-31 21-2-28 21-4-30 21-6-30

2.2 Inventory

China Nylon Filament Yarn Inventory

day NFY inventory
35

30

25

20

15

10

0
20-6-30 20-8-31 20-10-31 20-12-31 21-2-28 21-4-30 21-6-30

Inventory in NFY plants slowly accumulated from 31.8 days in end-May to 32.4 days in late June, and as part of
fabric mills restocked moderately under quick increase in feedstock market, it dropped to 32.1 days in end-June.
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CCFGroup Monthly Report June 2021

Inventory of medium-large plants was around 25-35 days, some lower at 15-20 days, and inventory of small-
sized plants was divided at 5-10 days and 25-30 days or above.

III. Outlook
At the end of June, the price of nylon textile filament has risen slightly with the raw materials, but the traditional
textile industry is in the off-season. Except for a small number of weaving factories with strong financial strength
or hot-sold products that have appropriate replenishment, most of the fabric mills still continue to purchase at
need-to basis only. In July, purchase of nylon filament may still be at hand-to-mouth mode, and part of products
may chase up feedstock, while it is hard for conventional products. But NFY plants are not under too much
burden to cut down production, as demand is expected to recover in August.

DISCLAIMER
This document and the information, opinions, estimates and recommendations expressed herein, have been prepared by
CCFGroup to provide its customers with general information regarding the date of issue of the report and were subject to
changes without prior notice. CCFGroup is not liable for giving notice of such changes or for updating the contents hereof.
Neither shall this document nor its contents form the basis of any contract, commitment or decision of any kind. This report
or any portion hereof may not be reprinted, sold or redistributed without the written consent of CCFGroup.

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