Experts Expect That China'S Nylon Production Capacity Will Expand Significantly. Is It A Blessing Or A Curse?

At present, nylon is the second largest synthetic fiber product in textile field, next only to polyester. In recent years, demand has been increasing. China's Nylon industry is developing rapidly. However, this year's market situation of nylon Market...

Is China's largest production capacity of nylon fiber a blessing or a curse?

Since 2012, China's Nylon industry has been developing rapidly, and has also promoted the development of downstream industries in new product development and application fields.

How to locate the current situation of the nylon industry? Deng Jun, Secretary General of nylon fiber branch of China Chemical Fiber Industry Association, outlined: in recent years, China's Nylon industry has been developing rapidly. Among them, the upstream and downstream industry chain of nylon 6 has been linked up, and the industrial layout is becoming more and more perfect, and the market structure is basically formed. Wang Songlin, executive vice president of Hengyi Formosa Petrochemical Co, believes that the prospects for the development of the nylon industry are broad. It is estimated that by 2025, the global capacity will exceed 10 million tons, of which the main production capacity is concentrated in China.

Will nylon replace Dacron after lowering prices?

There are several factors that cause rapid development of nylon.

First, rising market demand.

In recent years, the competitiveness of China's Nylon industry has increased rapidly, and the demand has kept steady growth. In 2018, China's Nylon demand was 4 million 326 thousand and 800 tons, an increase of 14.2% over the same period last year, while the domestic output of 3 million 766 thousand tons still needs a large number of imports.

Second, technological innovation in nylon industry

Over the years, China has been constrained by the lack of raw materials for caprolactam supply, high cost price drives, and imperfect development of downstream textile supporting industries. With the improvement of production technology, the integration process of caprolactam and polyamide accelerates, and the scale of China's polyamide industry continues to expand, and the cost control ability is further enhanced. The development of nylon industry has promoted technological innovation.

Third, replace the market part of polyester applications.

At present, the price of nylon is higher than that of polyester, but nylon has better wear resistance and strength. With the improvement of the overall cost performance of nylon, a considerable part of the high-end market of polyester will be replaced by nylon with better performance and better price performance. This will provide a strong market demand for nylon production increase.

Can nylon's current market support expansion?

Although the huge expansion of nylon production capacity has a strong foundation, the scale of the future is not necessarily as expected by experts. In the final analysis, one of the most important factors affecting the development of nylon industry is upstream raw material supply, and the two is downstream market demand.

Some analysts pointed out that the production capacity of caprolactam chain in 2020 will continue to grow, but subject to the influence of the international market and industrial transformation, the terminal capacity growth rate is obviously slower, and the upstream capacity increment can not be digested. The caprolactam product chain operating rate is expected to decrease. In the face of the expansion of caprolactam production capacity, the competition of the nylon industry will further intensify. The downturn in textile market this year is mainly due to the expansion of upstream capacity and the shrinking of the downstream market. A lesson from the past is that the next development of the nylon industry should take warning and do not blindly expand production. This uncertainty is further exacerbated by the division and integration of Sino US relations and the decline of the European market.

Xiaobian believes that China's nylon production capacity will further improve, meet domestic demand and increase exports, but affected by international relations and global economy, it may not be able to achieve expectations.