The Negative Pressure Of Polyester Filament Keeps Downward Pressure.

In April, the demand for polyester increased to boost the polyester industry's start up. Its overall load reached over 90%, higher than the 86% load level of the same period last year.

But in the near future, the support of the raw materials collapsed, and PX fell $40 last Thursday. Due to this drag, the PTA price plunged in the afternoon, weakening the trading atmosphere in the polyester filament field due to the decline of raw materials, and the factory as a whole went light, so it is expected that there will be some downward pressure on the polyester filament in the short term.

Average price of polyester POY in recent market

Upstream support tends to be weak

Last week, the PTA price remained high and stalemate under the empty game. The main contradiction was the cost of raw material PX terminal.

At the beginning of the week, the price of PTA was narrowed down due to the delay in the maintenance of constant force devices, but the cost and the rigid demand remained stable and the price drop was limited.

On Thursday, PX prices continued to expand, and PTA futures fell at 1909 p.m.

However, spot prices are limited by the news of mainstream factories receiving goods.

As of Thursday, the price of PTA was 6510 yuan / ton, compared with the previous Thursday, the price fell by 65 yuan / ton, or 0.99 percentage points.

Glycol is still not improving. Due to the recent speed of port delivery, MEG inventory on port last Thursday dropped 7 thousand tons compared with last week.

In addition, the port is expected to arrive at 200 thousand tonnes this week, a decrease of 57 thousand tons compared with last week. There may be some MEG going out of stock this week, but it is still unable to fundamentally resolve the stock pressure.

Price reduction, production and marketing downturn

The price of raw materials continued to decline. As of last Friday, the atmosphere of polyester trading in Jiangsu and Zhejiang provinces was light. The production and sales of mainstream factories were mostly at 30-50% level, and some of the better factories were around 80%.

The quotations of polyester factories in Zhejiang market have been reduced. The preferential treatment is still in the actual paction process. The downstream weaving mills are mainly waiting and watching. The willingness to make up the warehouse is not strong and the market atmosphere is light. It is expected that the polyester market will continue to sink in the first half of this week.

At present, the mainstream of POY100D/36F quotation is between 9150-9250 yuan / ton, and the mainstream of FDY75D/36F quotation is between 9900-10000 yuan / ton, and the mainstream of DTY 75D/36F quotation is between 12200-12300 yuan / ton.

In terms of inventory, affected by the overall production and marketing, the overall stock of the polyester market is concentrated for 14-22 days. In terms of specific products, POY stocks are concentrated for 5-10 days, and FDY stocks are close to 11-16 days, while DTY stocks are about 22-28 days.

To sum up, upstream PTA and MEG are affected by the decline of raw materials, running in a short run in the short run, while the downstream production and marketing are slightly lighter under the influence of raw material decline. As soon as April, it was said that entering the polyester industry in May and June or ushered in the off-season.