Polyester Industrial Yarn: Price Reduction Or Limited Production?

Since the middle of September, the polyester market has been showing a downward trend of volume. Whether it is filament, staple fiber, or chips, bottles and other products are all "down and down", especially the filament products are quite large. In the early November, the decline was generally 1500 yuan / ton. Look at the market of polyester industrial yarn. In the early November, the price was generally between 14500 yuan / ton and 14800 yuan / ton, and the focus of the current market was mostly 13500 yuan / ton to 13800 yuan / ton.

When the industry silk market was trying to keep up with it, individual enterprises had a super low price dumping behavior, which had a negative impact on the current industrial silk market. Low price promotion or limited production and insurance price have become a big problem for all industrial silk enterprises.

According to the current situation of polyester market, reducing prices or limiting production is a dilemma. Next year's strong trend of PX products is already in sight. For the PTA factory, next year will be the year of the final exam. Perhaps the last two months of this year will be the last "sweet time". The PTA factory's attitude is still quite strong recently. Even in the lower reaches of the situation, PTA enterprises still try their best to support the market, and there are news of recent cuts or parking. On the MEG side, MEG is always a stronger side of polyester products under the support of insufficient supply in the future. Even if the price falls, its decline is obviously smaller than that of other products. With such strong raw materials in the upstream, polyester chips, as raw materials for industrial yarn, are bound to face a sustained high price. It is precisely because of this expectation, if the industrial yarn manufacturers choose to start directly fighting price cuts, then 1000D ordinary high-strength products may be reduced to below 12500 yuan / ton, and according to the estimated price of polyester chips this month, this will lead to a great loss of industrial silk manufacturers. Even if the price of the current slicing spot is around 10000 yuan per ton, the industrial silk manufacturers are also facing losses. In the context of tight funding for manufacturing industry this year, whether enterprises can bear the consequences of price cuts is not optimistic.

In addition, if the industrial silk enterprises reduce sales promotion, downstream consumer confidence will also be hit hard. In the early days, the price of 13500 yuan / ton of polyester industrial yarn has been gradually accepted by the market. Besides the role of civilian silk and raw materials market, the mainstream factories have been struggling to maintain this price and make modest reduction in production is the most important factor. But today, the news of the super low sale of individual enterprises is spreading. Some of the orders that have already been discussed may be destroyed. Even after wait-and-see hesitation, the downstream demand for purchasing intention will partly disappear. The key is that confidence has been lost.

It can be said that since Jiangsu's Hengli 200 thousand tons of industrial yarn project has been put into operation, the industrial silk industry is indeed facing a revolutionary change: the original plan similar to the planned economy has been unable to adapt to the changing polyester market, and turning to the real market economy in a timely manner has become an urgent problem for a period of time. The fact that some enterprises are selling at a low price forced the enterprises to face the transformation again. For the current market situation, timely and appropriate production reduction and price adjustment will achieve certain results.