News & Insights | Textile Industry

September Sees a Sign of Recovery for Nylon Tire Yarn Prices.

Published: September 24, 2024
Author: TEXTILE VALUE CHAIN

A mild demand before NE Asia’s autumn holidays caused Nylon Tire Yarn prices (NTY) to rise up by 1% in the first half of September. The August headwinds are still present, and Indian markets have stayed comparatively quiet. The 2.4% month-over-month decline in NTY prices that was observed in Indian markets in August was nevertheless noteworthy, and NTY has not been able to return to its prior levels. APAC markets have seen an increase in import spreads as oversupply and weakening of demand persist, partly because of the financial situation and partly because of flooding and typhoons that have affected China, Korea, and portions of Southeast Asia.

Nonetheless, NTY markets, which account for a sizable portion of end-use car sales, have been hampered by factors like decreased demand, longer lead times, and expensive input costs.

From a supply standpoint, August saw a decline in caprolactam prices as a result of contract prices falling while the markets were still well-supplied. The cost impact on NTY feedstock was lessened by weak caprolactam spot prices, which fell 7.4% at the start of August and continued to decline through the first half of September. By the end of August, the NTY upstream market for cyclohexane spot prices had fallen to an all-time low of FOB Shanghai USD 1110/MT, a 10% MoM basis decline, before slightly rising.However, the cost of energy, particularly gas, and crude oil both stayed cheaper than they were in July. As the labor market tightens, the upcoming month’s autumn celebrations will further impact NTY’s production side in APAC.

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