Nylon
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Market Outlook on Nylon 

• The global demand is expected to grow at a CAGR of 2.4 percent through 2017–2022

• Broad demand drive from the automotive industry and plastic product industry is expected to trigger the nylon market growth

• Emerging economies, such as LATAM, India, and other Southeast Asian countries, are expected to drive the global nylon market

• Nylon procurement intelligence shows that the top global suppliers are BASF | Ascend | Libolon (Li Peng) | Li Heng Chemical| Invista.
• The nylon market price outlook (Q3 2019 vs. Q2 2019): North America:2 percent increase, Europe: 1 percent decrease, and Asia: 8 percent decrease.
• Major nylon market and share: North America: 17 percent, Europe: 23 percent, Asia: 57 percent, Others: 3 percent.
• The challenges/opportunities in the nylon industry: Light-weight application in vehicles, 3D printing, and bio-based nylons. PE, POM, etc., offer similar properties to the demand segments, posing as substitutes.

Demand Market Outlook

• The global nylon market is currently oversupplied .However, minimal expansions are in place to meet up with the increase in demand growth

Industry Best Practice

Engagement Models

• Direct and consortium buying are the two relevant engagement models in the industry
• Direct buying is highly preferred, as consortium buying (group buying) is:

–Still in the beginning stages in the nylon resins industry
–Practiced more by metals and automobile industries

Contract Models

• Market Price Contract: The commodity is supplied at a market price or benchmark price
• Fixed Contract: The buyer can decide to have a fixed margin (the margin of supplier is fixed throughout the contract period) or fixed price (prices are locked for the contract period)

Pricing Formula

Resin Producer–Converter 

• Monomer Based

Nylon Price = Monthly Nylon Contract Prices + Fixed Component (Costs from Overhead, Freight, Conversion) + Premium 

• Index Based

Nylon Price = Price of the Nylon Resin Quoted in the Index for the Particular Month (based on indices, such as CMAI/CDI/Platts/IHS/ICIS) + Additional Costs (based on volume, time, and clauses in purchase)

Converter–End User

Nylon Price = Nylon Resin Index Price for the Particular Month + Conversion Cost (from utilities, labor, additives, specific grade) + Margins

Global Market Size: Nylon

The global nylon market is forecasted to reach $32 million at a CAGR of 5 percent for the forecasted period until 2022.Automobile, electronics, packaging, CPG industries, etc., are expected to drive the demand

• The nylon market is expected to portray a strong growth in the coming years, taking in support of higher raw material prices and healthier demand trends after witnessing lackluster market sentiments during

  the 2015–2016 period.

• Concerns of supply tightness had arisen, especially in Europe and Asia, in line with capacity rationalization in the upstream as well as ongoing environmental regulations in China
• Among the top regions, Asia with the largest capacity share of 57 percent and 5.3 MMT/year capacity is driving the nylon market

Global Capacity–Demand Analysis

• The overall nylon business sentiments improved strongly, as 2016 ended impacting price hikes, increase in consumption trend, and better purchasing momentum
• The strong demand drive from automotive and engineering plastics sectors, along with capacity constraint issues, the nylon rebounded from the bearish outlook it portrayed during 2015–2016

Market Outlook

• The global nylon market is growing at a CAGR of 2.4 percent, with Asia being the top region for the demand growth
• In terms of two main grades in the industry (nylon 6 and nylon 6,6), capacity of nylon 6 is more and stands at ~7.2 MMT/year compared to nylon 6,6 at ~2.3 MMT/year in 2016
• Major demand driver for nylon 6,66 is from automotive and engineering plastics industry, while the textile industry lead the demand from nylon 6

• The consumer goods industry and electronics industry will also witness a growth in demand and so the nylon market is likely to grow in the future.

• With the rebound in demand drive and buying activities, the operating rates have increased to levels between 76 percent and 80 percent

Engagement Outlook

• With capacity rationalization being targeted to wage the supply–demand gap, fixed contract models could be engaged, so as to avoid risks involving external factors, like supply disruptions

• According to the nylon market intelligence report, the prevalent industry practice is direct buying and a fixed contract is often preferred.

Market Overview

The nylon 66 price trend shows that decline in feedstock benzene market and lackluster downstream demand supported a decline of 1.3 percent in North America. Despite increases in the feedstock benzene market, nylon market price portrayed a rollover during the month of August. Weaker buying momentum due to the recent US-China trade escalations, lower feedstock price sentiments are likely to support for nylon market price declines in the Asian market. The nylon 66 price trend in Asia: Lower feedstock prices from caprolactam and benzene, weakened demand sentiments as well as cautious buying activities due to the recent ongoing escalations supported for a decline in the Asian market.

The global capacity of nylon was 9.6 MMT in 2016 and the demand of the global nylon market was 7.4 MMT, clearly showcasing the wide gap between the capacity and demand. The major supply markets of nylon were Asia, North America, and Europe. Asia accounted for 57% share in the supply market while Europe came in second at 23%, while North America accounted for 17% market supply share. When it comes to supplier power, Asia has low supplier power while North America has high and Europe has medium supplier power. Asia has a high buyer power in the global nylon market, whereas Europe and North America have medium buyer power.

The nylon market is likely to increase at a CAGR of 3.4% by 2026 due its diverse range of usage in industries such as appliances, automotive, wire and cables, industrial, electrical and electronics, film and coatings, and consumer. Due to its strength and durability, nylon is always in demand and is likely to expect an increase in demand in the future. Nylon price history showcases how the dip in nylon demand ended up causing the decrease in nylon prices. However, as the demand for it increased, so did the prices. According to experts, nylon market price can stabilize or increase as the demand increases or gets better in the future.

The nylon 6 product segment used to dominate the market and this trend is likely to continue in the next few years. Nylon 6 makes for an excellent substitute for a range of materials and is a versatile material. For instance, its usage in travel accessories has ensured that the growth of nylon 6 continues.

Why You Should Buy This Report

This report provides information on the global nylon market, demand, trade dynamics, imports, exports. It gives the regional market analysis of North America, Europe, Asia and the Porter’s five force analysis of these regions.
It lists out the nylon industry drivers and constraints and the major innovations in the nylon market. The report breaks down the cost structure, does the pricing analysis and gives the nylon 66 price trend and nylon market price. It gives nylon procurement intelligence, details the supplier landscape and does a SWOT analysis of suppliers like DowDuPont, Lanxess, Libolon (Li Peng), etc.