The Reduction in Nylon Filament Yarn Import is a Sign of the European Economy Challenges
- 21-Nov-2022 6:32 PM
- Journalist: Jacob Kutchner
In Europe, Nylon Filament Yarn imports from China have been falling since the third quarter of this year. This trend reflects Europe's economic challenges due to the Russia-Ukraine war, the natural gas crisis, and rising inflation pressure, worsening demand fundamentals.
In Eurozone, the Nylon Filament Yarn manufacturing industry entered a contraction phase as output, and new orders for Nylon Filament Yarn for its utilization as a fabric in the Apparel sector declined at higher rates. At the same time, with the rising inflation, energy prices, and other economic effects of the Russia-Ukraine war, European economies are anticipated to experience difficulties. Consumer attitude towards bulk procurement has also declined. Meanwhile, since Europe is one of several Southeast Asian trading partners, the economic slowdown in the Eurozone will undoubtedly have a ripple effect on Asian countries.
In China, Domestic sales of Nylon Filament Yarn fell sharply in November 2022. Since all textile manufacturers are under more inventory pressure, they are unwilling to pill up their stock before the Spring Festival. Additionally, the Covid outbreak resulted in difficulties in Nylon Filament yarn production and distribution.
According to the traders, "the demand for spring and summer clothes also fell short because of rising inflationary fear in Europe and the US, making it difficult for upstream factories to destock." They further quoted weak Christmas orders from the exporting market this year. Therefore, the Asia-Pacific region's depressed market is mainly caused by a decline in demand from exporting nations for fabrics for use in Apparel manufacturing.
As per the forecast by ChemAnalyst, the Nylon Filament Yarn market is majorly dependent on its demand from the downstream sector. However, it is difficult for Nylon Filament Yarn demand to improve significantly. Thus, Nylon Filament Yarn is expected to still be in low consolidation by the end of this year.