The Giant Sent A Price Rise Letter To The Downstream Textile Industry, But It Is Still Early To Stock Up!

It has to be said that in 2020, when the overall textile environment is flat, some commodity prices are still like a runaway wild horse! Especially nylon and spandex, the early rising speed has made many cloth bosses "headache"!

Recently, the nylon raw material giant has come to boost the market again!

DuPont sent another price increase letter on the 24th, deciding to increase the prices of the following products in the Asia Pacific region from January 4, 2021 or if the contract terms allow:

Raise DuPont ™ Zytel ® The price of nylon 66 non reinforced products increased by 650 dollars per ton, equivalent to 4245 yuan per ton;

Raise DuPont ™ Zytel ® The price of nylon 66 reinforced products increased by 300 dollars per ton, equivalent to 1959 yuan per ton;

The price adjustment will take effect on January 4, 2021.

Note: The RMB price converted by the price increase letter is the latest exchange rate today, excluding VAT, customs duties and other related miscellaneous fees.

After the National Day, the driving force for the rise of the nylon industry chain first came from the demand side. The market focus of the nylon industry chain was supported by the good news of India's order transfer to China, the demand for winter clothing during the Double 11 Festival, and the demand expectation for "La Nina" cold winter. Due to the large-scale outbreak of the epidemic this year, many large Indian enterprises were unable to deliver goods normally, so a large number of orders originally produced in India were transferred to China. Among them, the orders for towels, bedsheets and other products were large. In addition, the early orders in the downstream market were relatively conservative, and the market demand was overstocked until the fourth quarter. With the approaching of the National Day holiday, the cold winter fabric and clothing market atmosphere gradually recovered, This has gradually improved the mentality of the industrial chain on the market, comprehensively improved the downstream commencement, and promoted the market to continue to rise, making the overall atmosphere of the market hot. In the fourth quarter, the international oil price stood at $50, and the trade atmosphere of textiles at home and abroad was hot. Both domestic demand and foreign trade had a certain degree of stock, and the prices of raw materials such as nylon also showed a strong performance, pushing up their prices again.

While the downstream demand of nylon industry is improving, the market focus of upstream raw material end is also gradually rising. It is learned from the raw material manufacturers that in addition to the price rise caused by demand, the recent price rise of nylon against the trend is mainly driven by the cost side. In recent months, DSM, Toray, EMS, Asahi Huacheng, Wanhua, BASF and other giants have raised their prices. In addition to the news of the early plant parking of Wanhua and Aoshengde, the chemical giant has released the news of price increase and plant parking, helping their prices rise again.

In December, especially after the middle of the year, the trading atmosphere in the domestic and foreign trade markets was not smooth. Many manufacturers were carrying out early orders, and new orders were issued slowly. In addition, the prices of nylon and other materials have been rising frequently, which has exceeded the expectations of many manufacturers. Their purchase intentions for raw materials are not strong.

A salesperson of a textile enterprise mainly engaged in Nise Textile said that the recent factory construction was very low.

At the same time, this year's market is quite special. Although the global economy is slowly recovering, the impact of the epidemic on the market has not dissipated, especially in countries with more serious outbreaks overseas. The blockade has not ended, ports have stagnated, and consumption has declined significantly year on year. All these are undoubtedly Italian air for the textile industry.

All kinds of signs show that there is still no obvious signs of recovery in terminal demand, and many textile professionals have pessimistic expectations on the market next year. Nylon, as a textile material, still needs "Dongfeng" if it wants to have a breakthrough in high price. However, the price of raw materials is still strong in the short term, so the manufacturer can properly stock up to avoid the price rising in the later period and the production cost being relentlessly raised!