As operating pressure reduced on plunging caprolactum and nylon chips prices, nylon filament yarn prices fell further in the second week of August. Textile yarn makers in China continued to cut run rates on poor confidence. They may carry out further production cuts given the off season demand for textiles amid lackluster economy situation.

In non-textile yarn sector, run rates were at around 60-70% and downstream converters fad poor liquidity on limited fresh order intakes amid dull season, restraining demand for nylon yarn and in turn weighing down yarn prices. Nylon yarn prices will be flat amid easing cost pressure while supply is reducing, supporting demand-supply balance. It is expected that nylon yarn market will continue trending down to find new bottom in August.

Semi-dull FDY70D/24F prices in China were down US cents 12 a kg on the week, due to weak Yuan while FDY40D fell US cents 21 a kg. Nylon DTY 70D/24F prices were down US cents 22 a kg while DTY 30D/10F fell US cents 16-25 a kg. Monofilament 30D was down US cents 13 while staple fiber 1.5D was down US cents 12 a kg.

Courtesy: Weekly PriceWatch Report