Nylon 6 export grows in slower pace in 2023

In January to September 2023, China's nylon 6 chip (the export volume is mixed with nylon 6 compound products) exports has continued a rising extend except for the month in May and June, accumulating to 357 thousand tons in the first 9 months of the year, almost 10% of China's nylon 6 chip production already. In 2022, China's nylon 6 export has taken about 9% of the total production. It means that nylon 6 export has been attaining a more important share in its total supply structure.

With the advantages of comparative lower prices and steady supply, China's nylon 6 export growth momentum extended in 2023, but the growth rate was evidently lower compared with the year of 2021 and 2022. The export has achieved explosive increase in 2021, with a year-on-year growth of 108% in the whole year and a yoy growth of 129% in Jan-Sep 2021. In 2022, increase continued in a slower pace, as nylon 6 export rose by 53% in the whole year, and 43% in Jan-Sep 2022. The growing trend has been in an evidently slower trend in 2023, as the yoy growth reduced to 29% only. Compared with the 2021-2022, export outbreak has seen signs of weakening, overseas demand and the China's substitution of suppliers in other regions could be marginally reduced. It is expected that in 2023, nylon 6 export growth rate may continue to decline.

Changes in nylon 6 exports in Jan-Sep 2023

1. By destination

Among the top 20 major export destinations of China's nylon 6 export, most of them have achieved a year-on-year growth, and only the volumes to Indonesia and Colombia reduced. India remained the largest export destination of China, with its yoy growth slightly higher than the average growth rate. The export to Belgium, Malaysia, South Korea, and Vietnam were evidently higher than the average, at above 57%. 

2. By origin

In terms of supplying regions of China, Jiangsu, Fujian, Zhejiang and Shanghai have been staying as the absolute largest exporting regions. The volume from Fujian province has grown by 130%, mainly because of the large nylon 6 capacity and steady and high quality of products. Jiangsu's export was growing in line with the average rate, and Shanghai only grew by 9%. Zhejiang's export had reduced 7% year-on-year. Notably, the export volume from Shandong province has been growing significantly by 177%, mainly because of the local intensive capacity expansion of nylon 6 chip and its key raw material caprolactam, which not only enabling the large available volumes for sales, but also a relatively lower prices due cost advantage from integrated production.

As China is planning additional nylon 6 chip capacity in 2024, the supply advantage that builds its export edge will expand. However, with the export volume increasing, the demand in overseas market is still limited, and the export growth rate may be reduced further.