China’s Nylon Exports Pick Up

Market News

China’s Nylon Exports Pick Up

On the basis of the substantial increase in exports in 2021, China's export of nylon products have maintained a rising momentum in 2022, and the export growth of many products in May 2022 is very prominent.

Jan-May export YOY change in 2022
	Categories
Growth rate falls	Nylon 6 chip, industrial filament, DTY, POY/FDY/HOY, apparels
Growth rate rises	Nylon film, textiles
Negative growth rate	Nylon 6 cord fabric
	Categories
Growth rate between 20-40%	Nylon 6 chip, industrial filament, POY/FDY/HOY, DTY
Growth rate between 10-20%	Nylon film, textiles, apparels
Below 0%	Nylon 6 cord fabric

In 2022, nylon products with a year-on-year growth rate of 20-40% sees slower increase compared with the same period last year. The main reason is that compared with the export volume under the impact of the epidemic in 2020, the recovery growth in export in 2021 was too large. CPL export grows dramatically on small base China has always been a net importer of CPL. However, the expansion of overseas CPL production capacity is basically in a stagnant state, and some plants are gradually withdrawing. The global development focus is on Chinese mainland. With the advantages of price, complete industrial chain and quick market responses, China's CPL flake export has achieved rapid growth. Nylon 6 chip export grows strongly The export growth rate of nylon 6 chip in 2021 reached as high as 108% year-on-year. On the basis of that, the export growth in 2022 is still strong. The export volume in the first five months has increased by more than 40% year-on-year, the highest growth rate in the industrial chain (except CPL). And the export is focusing on non-textile-grade chips. Exports to India increased most prominently, while exports to Japan has declined, with minor changes to other regions. NIY export growth accelerates, cord fabric export falls The export volume of nylon cord fabric increased by 48% year-on-year in 2021. Due to limited production capacity, the surge in demand boosted the long-lost high profits in the cord fabric. However, in the first half of 2022, the export volume has lingered low from February to April, resulting in a negative year-on-year growth in cumulative exports from January to May. This change is due to price fluctuations and weakening demand. In May 2022, the export volume has rebounded to the level of the same period in 2019 and 2021, but it is difficult to continue to break through. Nylon industrial filament exports are much stronger. In 2019-2021, the growth of industrial filament exports was not obvious. Since the fourth quarter of 2021, exports have begun to grow significantly. The cumulative export volume from January to May in 2022 has increased by as much as 28% year-on-year. Particularly in in April-May, a traditional offseason for NIY export (export in Apr-May normally dropped month-on-month), the export still achieved prominent growth. Among the export, the growth of high-tenacity filament is relatively prominent, while the export growth of industrial filament for cord fabric is relatively weak. Nylon POY/FDY/HOY export grows more than DTY In 2021, the export of nylon textile filament increased significantly, mainly as it repaired the demand gap during the outbreak of the epidemic in 2020. The growth rate of nylon POY/FDY/HOY reached 76%, which was twice the growth rate of DTY. In 2022, the impact of the epidemic has weakened, and the growth rate of nylon POY/FDY/HOY exports has slowed down. From January to May 2022, nylon textile filament exports increased by 20% year-on-year, but POY/FDY/HOY exports have grown by 31% year-on-year, which is significantly higher than DTY. Exports of nylon POY/FDY/HOY is evidently better than that of DTY. Except for the reason that the epidemic in 2020 has reduced POY/FDY/HOY exports more evidently, the export demand for POY/FDY/HOY has indeed grown more than that of DTY in the past two years. However, the exports of both nylon POY/FDY/HOY and nylon DTY have decreased month-on-month in May 2022, which is contrary to the trend of the same period last year and the trend of other products in the industrial chain.