With Weak Cost-Side Support, Polyamide Filament Yarn Was Trading Sluggishly and Consolidating

Review of Last Week's Price Trends

1. polyamide DTY (Jiangsu 70D/24F, semi-dull, premium grade): Last week, the market transaction price held steady at 15,980 RMB/ton, marking a cumulative decline of 3.97% from the 16,640 RMB/ton recorded on June 1. Following two rounds of concentrated price cuts in early June, prices remained flat last week, with manufacturers showing no immediate intention to adjust rates.

2. polyamide POY (Jiangsu 86D/24F, semi-dull, premium grade): Ex-factory prices remained firm at 13,800 RMB/ton last week. Compared to the 14,500 RMB/ton benchmark at the start of the month, the cumulative drop stands at 4.83%—the steepest decline among the three filament types. After a price reduction on June 11, the price has remained stable at this low level throughout the week.

3. polyamide FDY (Fujian 40D/12F, semi-dull, premium grade): Quotes remained stable at 16,500 RMB/ton last week, a cumulative drop of 2.94% from the 17,000 RMB/ton seen at the beginning of the month; the overall decline was less pronounced than that of DTY and POY. After a rapid retreat in early June, prices entered a phase of consolidation and stalemate last week.

In terms of price trends, polyamide filaments underwent two rounds of concentrated price cuts to boost sales in early June, efficiently releasing accumulated market risk. Since June 15, manufacturers have had little room to further price reductions. All three major product categories have entered a phase of price stagnation at the bottom; market transaction levels remain stable, lacking the momentum to a rebound however also showing no immediate pressure to a sharp decline.

Upstream raw materials: Cost support remained weak.

Last week, the upstream raw material market to polyamide continued to exhibit a direction of weak stability; the failure of raw materials to provide efficiently cost support to polyamide filament yarn was the primary factor behind the sector's continued sluggishness.

The upstream caprolactam market fluctuated within a narrow range and remained generally weak yet stable. Insufficient follow-through in downstream chip procurement drove a continued decline in PA6 chip prices, with the price baseline to raw materials steadily shifting downward. On one hand, this eased raw material cost pressures to polyamide filament producers, removing any strong incentive to them to raise prices. On the other hand, pessimistic expectations regarding the continued weakening of raw materials dampened downstream confidence in stocking up; persistent bearish sentiment in the market indirectly compelled filament manufacturers to implement a strategy focused on maintaining stable prices while prioritizing sales volume.

Downstream demand side: End-consumers were adopting a wait-and-see stance, and market trading activity was subdued.

There is a strong "wait-and-see" sentiment in the downstream textile market, with weak purchasing interest; procurement is largely limited to immediate needs, and extensive advance stocking is rare.

Downstream weaving companies report lackluster orders and slow inventory turnover. Due to cautious capital regulation, they generally implement a "buy-as-needed" approach to small-batch polyamide filament purchases rather than engaging in bulk procurement, resulting in sluggish overall shipment rates to manufacturers. Amidst weak demand, filament producers lack the market leverage to raise prices; even though prices had previously dropped significantly, downstream buyers remain cautious, preventing any rebound in spot prices and keeping the market range-bound at low levels.

Market Outlook

In the short term, the polyamide filament market is likely to maintain a direction of consolidation with a weak undertone. On one hand, there are no clear signs of a rebound in upstream raw material prices, meaning cost factors offer little support to a price recovery. On the other hand, there is no expectation of significant improvement in downstream demand; purchasing remains limited to immediate needs, and manufacturers continue to face pressure to move inventory. Should raw material prices weaken further and downstream orders remain sluggish, the possibility remains that some companies might offer price concessions to clear stock.