In the nylon industry, there has always been a chronic poison – credit sales. The feeling of chronic poison is: take one bite, it is very sweet, take another bite… As time goes by, you can’t live without it, and gradually come under its control. If you want to quit sometimes, it is obviously impossible without paying some price.
How do nylon manufacturers and fabric manufacturers using nylon as raw material feel when facing credit sales?
He Zhuosheng, vice president of Nylon Xinhui Meida Nylon, once said angrily: “Sales on credit actually give downstream companies a very bad ‘guidance’: You can get things without paying. Others are doing this, so why should I give What about the money? I can use the money to other places that need the money. This approach is simply devastating to the nylon industry!”
“Sales on credit also create unfair competition for our downstream industry,” said Shi Qingdao of Howard Family, “because he gets it on credit and doesn’t want to pay it back, so he doesn’t have raw materials included in his costs. The price is equivalent to zero cost, which is unfair to our business that operates according to the rules.”
It can be seen that both upstream raw material manufacturers and downstream fabric companies are dissatisfied with the “credit sales” transaction method.
Since the end of last year, the entire nylon industry chain has been on an upward path, and many products that once had negative profits have gradually returned to profitability. For example, POY has begun to turn a profit with a large increase in elasticity, FDY demand is acceptable, and profitability is still good. In early September, every The profit per ton has been higher than 1,000 yuan per ton. This also gives nylon manufacturers enough confidence to quit the chronic poison of “credit sales”, and nylon has become as strong as its big brother polyester. At the beginning of the month, Fujian Jinjiang Technology and Fujian Hengshen Group issued a notice on “Regulating the Collection of Credit and Debt”. The general content is that the company must settle the payment within a certain period of time and gradually realize the delivery of goods upon payment. Credit.
What aspects support the continuous rise in nylon yarn prices and the improvement in benefits?
On the one hand, there is absolutely no doubt about the impact of caprolactam on nylon yarn. The average price of caprolactam in the first half of 2016 was 9,873 yuan/ton. In the first half of 2017, the average price of caprolactam was 14,200 yuan/ton, a year-on-year increase of 43.8%. As can be seen from the picture above, caprolactam has experienced three small climaxes, namely March, August and the current wave that is forming. The reasons for these three waves of gains are inseparable from the equipment maintenance situation. For example, recently driven by styrene and affected by Hurricane Harvey in the United States, the pure benzene market has risen sharply. In addition, the recent environmental impact of cyclohexanone has severely reduced the load and production of the equipment, resulting in a shortage of supply in the market. These have caused a huge impact on the cost of caprolactam. Pressure. For example, due to the tight price of cyclohexanone and the high price of cyclohexanone, Nanjing Oriental has reduced the production of its 400,000-ton caprolactam unit by half, and currently only operates one line to maintain some contract orders. Zhejiang Juhua also reduced its load on its 100,000-ton unit to 60% due to cost pressure.
On the other hand, the popularity of the downstream fabric market has also driven up the price of nylon yarn. In April this year, some ultra-fine nylon yarns also had great highlights in the spring and summer fabric market due to their ultra-thin, transparent and lightweight characteristics, becoming a major highlight at that time. One of the hottest fabrics. Currently in the “Golden Nine and Silver Ten” period, orders are gradually increasing in the market, and winter down jackets are also becoming popular. Many nylon fabrics are even out of stock. As the main force of winter Korean clothing fabrics, nylon fabrics naturally have many highlights, such as 380T and 400T. Matt nylon and other fabrics have begun to be sold in large quantities. 20D fine denier high-density nylon and 20D nylon weft elastic continue to sell well. The “crazy” nylon yarn has naturally led to the rise of nylon yarn.
Standardizing credit sales and rebuilding industry order will be of great benefit to both the upstream and downstream nylon industry. I believe that in the near future, nylon manufacturers will be able to say to buyers in a domineering manner: If you want to get the goods, you can withdraw cash!
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