Nylon yarn becomes costly in Asia

In China, FDY70D/24F SD prices were up US cents 4 a kg in the third week of August while FDY40D jumped US cents 9 a kg on the week.

DTY 70D/24F prices were rose cents 4-7 a kg on the week while 30D/10F were up US cents 9 a kg during the week. Monofilament 30D prices rolled over while nylon staple fiber 1.5D prices rose US cents 9 a kg on the week.

Nylon filament yarn prices marched higher to cover margins amid firmer raw material cost. Although downstream buyers made limited replenishment, yarn makers cut operating rate actively to 60%, contributing to better supply demand fundamentals.

In September, market sentiment will turn cautiously upbeat after the seasonal ebb. During the G20 Summit period, Xiaoshan?based mills will undertake heavy production cuts. Thus, run rate will fall to 50%, which will help relieve the pressure from excess supplies.

Courtesy: Weekly PriceWatch Report

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