Nylon 6 market supply and demand are basically balanced and the industry development trend is improving

Nylon 6, also known as PA6, polyamide 6, and nylon 6, is a high-density compound with a white crystalline or translucent thermoplastic resin appearance. Nylon 6 is one of the mainstream products in the nylon market at present. It has the characteristics of low melting point, low strength, high joining and unloading strength, good oil resistance, good impact resistance, good wear resistance, strong hygroscopicity, and wide working temperature range. It is widely used in clothing , fishing nets, conveyor belts, carpets, electronics, automobiles, food packaging, pharmaceutical packaging, engineering plastics and other fields are widely used.

From the upstream of the industrial chain, caprolactam is currently an important raw material for nylon 6. In recent years, against the background of local companies gradually achieving technological breakthroughs, my country’s caprolactam production has shown a steady growth trend, increasing from 2.365 million tons in 2017 to 3.986 million tons in 2021. The sufficient supply of upstream raw materials has laid a good foundation for the steady increase in domestic nylon 6 production. According to the “China Nylon 6 Industry Development Prospects and Investment Risk Avoidance Suggestions Report 2022-2026” released by the Industrial Research Center, 2021 The total domestic nylon 6 production capacity reached 5.871 million tons, a year-on-year increase of 7.4%; the actual output was 4.255 million tons, a year-on-year increase of 6.8%. From the perspective of regional distribution, Jiangsu, Fujian, Zhejiang, and Shandong are currently the four provinces with the most concentrated nylon 6 production capacity in my country.

From the downstream of the industrial chain, benefiting from the rapid growth of domestic market demand for chemical fiber products and the continuous development of automobile, electronics, food and medical packaging and other industries, my country’s nylon 6 market demand continues to increase. In 2021, the domestic nylon 6 market demand will reach 4.147 million tons. From the perspective of supply and demand data, at this stage, my country’s nylon 6 market supply and demand are basically balanced, and the industry development trend is good.

Nylon 6 is one of the mainstream products in the domestic nylon market. There are many companies in this field. The main companies include Hengyi Petrochemical, Polyshun New Materials, Luxi Chemical, Yongrong Jinjiang, Zhongjin New Materials, Meida Nylon, and Hongsheng New materials, Shenyuan new materials, Haiyang chemical fiber, Changan polymer, etc.

In recent years, under the background of the continuous advancement of the national dual-carbon goals, the increasing intensity of environmental protection supervision, the rising trend of intelligent transformation of equipment, and the continuous coverage of industry standards such as restrictions on high energy consumption, the integration speed of my country’s nylon 6 industry has continued to accelerate. At present, the domestic nylon 6 market is gradually moving closer to leading companies with higher technical levels, higher brand building, and strong product innovation capabilities. In the future, industry concentration will continue to increase, overall profit margins will continue to grow, and the industry development trend will be good.

Industry analysts said that in recent years, domestic caprolactam production capacity has steadily increased and chemical fiber products, textiles, engineering plastics and other industries have developed rapidly. Under the current situation, the upstream and downstream of the nylon 6 industry chain are showing a good development trend, and the industry development prospects are good. At the same time, against the backdrop of accelerating integration of the domestic nylon 6 industry, its industry concentration is increasing, and the industry will continue to develop in the direction of high-end and green in the future.