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China's CPL & nylon market in doldrums
Mar '12
March is normally a peak season for the Chinese textile sector. However, the off-season has set in early this year.

Nylon market price has been falling with each passing day, which has disappointed Chinese textile enterprises.

Prices of caprolactam (CPL), the main raw material from which nylon is produced began to decline from beginning of March.

Domestic CPL offers fell from 23,500 Yuan to 22,600 Yuan, representing a drop of 3.83 percent; nylon slice market also went downhill, due to dual pressures of upstream raw materials and downstream procurement.

Nylon slice for conventional spinning has declined to 24,300 Yuan / ton and chips for high-speed spinning have dropped to 24,700 Yuan / ton.

Looking at the trends of upstream raw material market, CPL market has been weak and declining in recent days.

The CPL market showed equilibrium in early March, due to the support from crude oil and market focus maintained at 23,300 Yuan / ton.

But, the good times did not last long; stock pressure of manufacturers began to enlarge amid overall weakening market and poor sales.

CPL market could not hold and gradually declined, so most manufacturers adjusted their prices, as the adjustment promoted some sales.

Demand for nylon has also dipped and is light, so nylon manufacturers face higher inventory pressure.

Experts agree that the nylon market is expected to show obvious signs of decline with weak rally momentum, in the future.

Fibre2fashion News Desk - China

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