A downtrend in prices of the Nylon Filament Yarn (NFY) value chain has continued to rule the Asian market during the second week of May 2023. The Nylon market in Asia has also been experiencing price pressure recently as a result of reduced buying activities in the region. In Asia, the cost of Benzene, a feedstock of Nylon products, decreased. Additionally, the downstream demand from the textile industries fell.

NFY prices edged down further as Benzene and Caprolactam markets were in weakness. Demand remained low, and downstream industries continued to run consistently. Following huge inventory, downstream industries also reduced their operating rate.

On the demand side, the demand for NFY has significantly decreased across the Asian market since the beginning of May. This change in demand is a result of shifting market dynamics and a number of other factors, including reducing feedstock prices, fluctuating Crude oil prices, and economic uncertainty that has an effect on the textile industry. However, given that raw materials and NFY prices have declined recently due to low demand and huge availability, the demand trend is critical at this point.

Meanwhile, circular knitting mills and lacing mills ran at lower rates than warp knitting and weaving sectors, indicating a limited demand for NFY. Given ample inventory, non-textile industries like fishing net yarn, monofilament, and cable fabric producers also reduced purchases.

Manufacturers were able to sell NFY at lower rates due to lower production expenses, which made it more affordable throughout the week. However, demand was not satisfactory to support the increment in prices. As a result, the price for NFY 40/24D dipped by almost 2.3%, and the price hovered around USD 2580/MT on the Ex-Mumbai location during the week ending 12th May 2023.

According to ChemAnalyst's prediction, "The price for NFY is projected to remain low due to the drop in demand fundamentals, while stocks in the region were practically enormous. Therefore, the price is anticipated to stay in lower ranges if the Nylon market is not supported by demand.