Nylon Tire Yarn (NTY) Prices Overview

Market Overview

Nylon Tire Yarn (NTY)
 
For the Quarter Ending December 2020
 
Asia-Pacific (APAC)
 
NTY supplies dropped in Q4, as the shortage in the feedstock Caprolactam enforced the reduction on production rates at nylon polymerization facilities. Some Chinese caprolactam producers curtailed their production levels to an average of 80%, which contributed to tighter availability of nylon chips. Furthermore, overall spot availability of the feedstock decreased in the Asian region followed by unscheduled force majeure heard at some facilities in Europe which restrained exports to Asia. A major north-east Asian NTY producer temporarily shut its facility for around a week as its caprolactam facility went offline in the second half of Q4. Sentiments were risen after the news of extension of anti-dumping duty over Nylon Tyre Cord Fabrics (NTCF) exports from China buzzed the Indian markets. Tracing the demand-supply dynamics, NTY prices in India climbed slowly while maintaining an average price of USD 2478 per MT throughout the fourth quarter.   
   
North America
 
The demand of NTY remained healthy in the North American region throughout the Q4. An unexpected outage at a major Nylon exporting facility in Antwerp (Belgium) caused significant shortage in the product supply, triggering a potential rise in the NTY prices. Strong recovery in the car OEM (Original Equipment Manufacturer) volumes improved prospects of the US’ tyre producers as almost half of the US NTY demand comes from the tire industry. Ascend Material Co. declared an unplanned turnaround due to the power outage in Florida at its Nylon 6,6 plant which further tightened the upstream supply. Strong end-use demand from the tire sector and tight supplies caused attenuation in rebuilding inventory for distributors triggering a spike in the prices of NTY. The U.S. Tire Manufacturers Association (USTMA) projects U.S. tire shipments will total 298.3 million units by the end of 2020, compared to 332.7 million units in 2019.
 
Europe
 

An unexpected outage declared by LANXESS at its 220,000 ton/year Nylon 6 facility in Antwerp (Belgium) due to technical issues created feedstock supply shortage. Rise in demand from the downstream sector led to global tightness in supply throughout Q4. It was estimated by many buyers that due to strengthening demand and tightened supply, the cost for Nylon yarns was estimated to rise in upcoming quarter, encouraged early restocking. The NTY prices were largely impacted by the spike in upstream in Russia and buoyant demand from the recovering automotive sector.

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Methodology

ChemAnalyst gathers information through primary research surveys conducted with various Nylon Tire Yarn manufacturers, spread across the domestic and international market, suppliers, and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated, and presented in chronological order to depict a meaningful and clear picture of the concerned market.
 
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Nylon Tire Yarn market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics, and strike out a balance amidst market volatility.
 
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
 
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global Nylon Yarn market.
 
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, suppliers, traders and importers and customers on weekly, monthly, and yearly basis.
 

Finally, region-specific markets for Nylon Tire Yarn are analyzed and region-wise demand pattern is tracked.

About

Nylon Tire Yarn (NTY) is a widely used as reinforcement in tyre to provide them strength and durability. Around 97% of the global NTY produce is used in manufacturing tyres used in motorcycles, scooters, light commercial vehicles (LMVs), heavy commercial vehicles (HCVs) and off the road (OTR) vehicles. The production method involves the passage of dried Nylon chips into a melt spinning machines which are then made to enter the spinneret to form a yarn of different densities as per specifications. Fibres of different length and thickness are made using holes of different sizes and varying ejection speed. The filaments produced are coated with water & oil to ensure dimensional stability followed by optimum quenching and solidification which offers desired tensile strength, elasticity and shrinkage characteristics under requisite heating. The yarn thus formed is further stretched multiple times to its original length to ensure that macromolecules lie parallel to the fibre length for full strength. Nylon tire yarn can be used for manufacturing tire cords fabric using processes like twisting, weaving, and dipping of several fibers.