Anti Dumping Makes The Nylon Industry Worse.

"I am from Shandong Haili chemical Limited by Share Ltd. In October, our company's annual output of 200 thousand tons of caprolactam project will be put into production."

"200 thousand tons of caprolactam? Good news."

"What technology do you use and what line do you use?"

"Is this product for high-speed spinning or plastic engineering?"

"This project is going to go into production. We will benefit greatly from the nylon industry."

Business news June 2nd, this is the recent annual meeting of the nylon Specialized Committee in Changle, Fujian. The representative of Shandong Haili chemical Limited by Share Ltd has just disclosed the reaction of the participants when the company is going to produce caprolactam. Why would the representatives of the polyamide enterprises attach importance to such a project? Why would it be of great benefit to the nylon industry? It is also necessary for the Ministry of Commerce to investigate anti-dumping investigations on the import of caprolactam originating in the EU and the United States in late April and the price increase of caprolactam since September last year.

　　 Nylon raw materials Serious shortage

Anti dumping is even worse.

Caprolactam and nylon sliced raw materials have been lagging behind polyamide polymerization and spinning for a long time. It has become a bottleneck for the healthy development of the nylon industry. In 2003, China imposed anti-dumping duties on imported caprolactam originating in Japan, Belgium, Germany, Holland and Russia, and this measure has just expired in 2008. Then, in April of this year, the Ministry of Commerce announced again that it would initiate anti-dumping investigations on the import of caprolactam originating from the European Union and the United States.

"5 years of anti-dumping measures have just expired. We haven't had time to catch our breath. How can we start anti-dumping?" Liu Wenhua, general manager of Zhejiang Yaxing Fiber Co., Ltd., said that the company joined the nylon industry in the bottoming period of the nylon industry. It has just signed a cooperation agreement with a Yiwu company to prepare for the expansion of the scale, so it has suffered such a rapid change in the caprolactam policy.

It is understood that at present, only four enterprises of Nanjing DSM Chemical Industry Co., Ltd., Sinopec Baling Petrochemical Company, Sinopec Shijiazhuang Chemical Fiber Co., Ltd. and Zhejiang Qu Hua group company are producing caprolactam in China. In recent years, in view of the insufficient supply of caprolactam in our country, although these enterprises have carried out capacity expansion and transformation, their capacity and output have been greatly improved, but they still can not change the situation of severe shortage of domestic supply. In 2009, the total output of caprolactam in mainland China was 334 thousand tons, the import volume was 601 thousand and 300 tons, the export volume was 1 thousand and 600 tons, the demand was 930 thousand and 300 tons, the dependence on foreign trade was 64.64%, and the market gap was very large.

"At present, China's Nylon industry is growing at a rate of two digits per year, and the growth of nylon chips will grow by 300 thousand tons from the end of last year to the end of this year, and 800 thousand tons will be put into production in two years. In the next 3 years, the dependence on caprolactam will still exceed 60% and even expand. Liang Chao Chao, consultant of Guangdong Xinhui Mei Da nylon Co. Ltd. pointed out that the most fundamental reason for the current situation of the nylon industry is the imbalance between supply and demand. For example, he said: "in previous years, when we negotiated the price of products with caprolactam enterprises, the initiative was in our hands. I said $1600 / ton would be $1600 / ton. Now, the price of $2500 / ton, you can not bargain, they do not worry about selling, you do not pay attention to the goods will be gone.

Prices are soaring.

enterprise profit Shrinking dramatically

Since 2009, the price of benzene has moved up sharply, the demand for the downstream cord fabric and civilian composite spinning has risen, and the funds have been extended. The price of caprolactam has increased rapidly in 2009 and increased to 2200 US dollars / ton in 2009 after the fall in 2008, up 100% from the beginning of the year. Later, as the price of benzene dropped, caprolactam was adjusted to $1850 / ton, but at the end of 2009, caprolactam was further pushed up to $2280 / ton with the optimistic expectation of the new year's capacity expansion. The same is true for the spot market, which reached 17800 yuan / ton in September 2009, up 78% compared with the beginning of the year. After being adjusted by the pure benzene, the price dropped to 15200 yuan / ton, 15% lower than the previous high level, and rapidly increased to 18600 yuan / ton at the end of the year. Over the past few years, there has been a pullback in commodities, including caprolactam, under the drag of international crude oil prices and weak external markets. Up to the beginning of May, the market price of caprolactam gold plate was 2550~2570 USD / ton, and the spot market price has risen to around 23000 yuan / ton.

"Whether it's a single 6 slice or a double 6 slice, the price is too high to be borne by enterprises, in addition to the difficulties in supply." Qingdao Zhongda Chemical Fiber Co., Ltd. Gong en Song said.

"The problem now is that the slicing price is too high, coupled with anti-dumping, the cost of raw materials has risen rapidly, and the enterprise has already been unable to bear it. Nylon sales are all right now, but profits are greatly reduced. " Meng Yinliang, sales manager of Jiaxing Effie polymerization Fiber Co., Ltd. also expressed the same meaning.

Chen Jiumei, director of Chinese market, PCI Fibres, began researching nylon Market in 2003. She likened the current polyamide chips and spinning enterprises to a piece of ice in the hot season. She said that the price of caprolactam has been callback in recent years, but the rate of change is too fast, and it will drop by 100 US dollars a day.

Raw material prices change so fast, downstream enterprise It can not be digested at all, which will seriously damage the healthy and orderly development of the nylon industry chain. Meng Yinliang, Jiaxing's Effie and polymerization fiber company, said that some enterprises are now facing the risk of shutting down because they can not afford higher costs.

Healthy and orderly development of the industry

All links need to be jointly maintained.

Since 2009, the price of caprolactam has increased by 80%, while the price of nylon sliced has risen, but the increase is 56.8% and 46%, much lower than caprolactam. The profit of industrial chain is mostly concentrated in the hands of caprolactam.

"The development of the nylon industry is not easy today. We should cherish the present situation." Zhang Youhua of Wuxi Changan polymer material factory suggests that if we want to promote the healthy development of nylon industry, we must start from the source.

In view of the recent price adjustment of caprolactam, Guangdong Xinhui Mei Da Liang Chao said: "from the overall supply and demand situation, the future price of caprolactam is unlikely to fall, but the short-term callback is beneficial to the entire nylon industry."

In the course of the interview, some business representatives said that if the price of caprolactam could not be returned to rationality, some companies could only abandon the polymerization industry and turn to import slicing. However, the import slicing was not smooth. The Ministry of Commerce issued a final notice in April 23rd. China decided to impose anti-dumping duties on imported nylon 6 chips originating in the United States, the European Union, Russia and Taiwan in April 22, 2010. In view of this situation, the enterprise representative said: "then directly import nylon fiber." Perhaps the representative is joking, but if this situation can not be changed, no one can guarantee that that will not happen. By that time, China's Nylon industry will not even occupy the first place in the world. The healthy and orderly development of nylon industry needs every link in the industrial chain to safeguard.