Nylon (PA6, PA66): Cycles
Storms, force majeures and then a Chinese flood
What this tab covers How its prices and margins move: past booms and busts with price levels, the spread or margin that the industry watches, the drivers of the cycle and the metrics to track.PA6 behaves like a commodity: its price is caprolactam plus a small spinning or compounding margin, and caprolactam follows benzene and Chinese supply discipline. PA66 was a tight oligopoly for decades because ADN technology was scarce, so its price spiked when a plant tripped. Chinese ADN plants changed that after 2022, and PA66 moved from bottleneck to oversupply in 2025 (ResourceWise). The floor is set by Chinese cash costs and output cuts; the ceiling by substitution to PBT, polypropylene compounds or polyester yarn.
The spread to watch PA6 chips minus caprolactam; PA66 minus (0.65 x adipic acid + 0.51 x HMDA)In November 2025 nylon 6 chips at $1,170/t FOB China sat roughly $0-100/t above caprolactam at about $1,200/t equivalent domestic (CNY8,600/t at about CNY7.1 per $), implying thin or negative chip margins (derived, indicative). PA66 spreads not published in sources reached.
Booms and busts
- 2018 and 2021
PA66 supply was hit by ADN and HMDA force majeures in the US, including the February 2021 Texas winter storm that idled Gulf Coast chemical plants. Auto compounders faced allocations.
PA66 prices not published in sources reached; contemporaneous reports described sharp increases (indicative)
- 2022-2025
China added about 70% to PA66 capacity, reaching nearly 1.5 Mt/yr, while demand was weak in Europe and North America. Chinese HMDA and PA66 prices fell steadily.
no levels published in source; China utilisation 65-70%, Europe 60-65% (ResourceWise, Dec 2025)
- November 2025
Chinese caprolactam makers agreed a 20% output cut on 5 November; caprolactam and nylon 6 chip prices rose.
caprolactam CNY8,600-8,650/t, up CNY450-500/t in two weeks; nylon 6 chips $1,170/t FOB China (Chemical Week via caprolactam tile)
What drives the cycle
- Chinese capacity and output discipline. China holds most PA6 and is now the largest PA66 producer; coordinated cuts move prices quickly.
- Benzene price. Benzene is the main carbon feed for both caprolactam and adipic acid.
- Car production and EV shift. Engine-bay PA66 parts shrink with EVs, while connectors and battery parts grow.
- Textile demand. PA6 filament follows Chinese apparel and sportswear exports.
Metrics to track
| Metric | Why it matters | Where to track it |
|---|---|---|
| China caprolactam and nylon 6 chip prices | PA6 price setter | Chemical Week, CCF, Mysteel |
| China PA66 operating rate and capacity | PA66 balance | Mysteel (OilChem), ResourceWise |
| Global light vehicle production | Engineering plastic demand | S&P Global Mobility |