A Review Of PET Filament Events In April 2019: Polyester Market Ahead

Under the influence of the cost side, the polyester filament Market in April will continue to rise.

Incident: in April 7th, explosion occurred at the three aromatic hydrocarbons plant in maoliao 6 light industrial area.

The explosion was caused by the rupture of the butane tower in the liquefied petroleum gas (LPG) pipeline. However, the PX device was implicated and ordered to shut down.

The corresponding PTA spot trading price rose sharply, coupled with the centralized maintenance of the PTA device, and the spot stock continued to rise. With the support of the cost side, the price of polyester filament enterprises increased, and the focus of the market shifted upward.

The downstream weaving enterprises, driven by buying and selling sentiment, have made up their own stores, and the production and sales of polyester products are hot. The average production and sales are nearly 400% during the trading day, and some high-end ones are near 800% and 1400%.

Event: mid April around the PTA device maintenance, become the mystery of the market.

It is understood that 4-5 months PTA device maintenance centralized, but PTA processing fees continued to rise, up to 1600 yuan / ton, the high profit makes PTA device maintenance there are many uncertainties.

And whether the repair and maintenance of Fu Hai Chuang 4 million 500 thousand tons of equipment can be repaired as scheduled has become a hot topic in the market.

For polyester filament, if maintenance is implemented, PTA will still have some good support. On the contrary, the PTA market will keep downside risks and lose the support of cost side, and the polyester filament will not escape the pattern of overcast.

Event: in April 22nd, the media announced that the United States was about to announce the termination of the sanctions sanction for Iran's oil imports, and international oil prices rose sharply.

The United States may terminate the sanctions exemption for Iran's oil imports, which will bring some favorable support to the oil market supply side. In addition, China's economic data will be better to boost demand, and the trend of oil prices in the latter part will still be excessive.

Short term supply of polyester raw materials market must be good support, but demand follow-up is weak, and the linkage between crude oil and polyester is not strong. The rise in oil prices has little effect on the polyester market.

And with the Jiaxing Yi Peng 250 thousand tons of polyester plant put into operation, Rongsheng 300 thousand tons of device repair is coming to an end, polyester market supply increased, downstream weaving enterprises pessimistic expectations increased, just need to buy, polyester stocks increased.

Events: May Day pre sale promotions, urgent demand for inventory.

At present, because of the high PTA processing fee, the industry profits are mostly concentrated in the upstream raw materials, polyester enterprises are still profitable, the downstream weaving profits are compressed, and the resistance is high.

Recently, raw materials have also been cut down correspondingly, so as to comfort the downstream users' mood. However, downstream users are not buying it. Weaving enterprises just need to buy, while polyester enterprises run at full capacity, resulting in a cumulative increase of 2-3 days in most polyester enterprises.

Near the May 1 holiday, enterprises are eager to inventory demand, and have launched the sales promotion mode. Some enterprises have lowered their offer by 100-200 yuan / ton, and most of them offer stable prices, with a real discount of 100-400 yuan / ton.

The expectation of the downstream weaving enterprises is still pessimistic, with a modest margin, the production and sale of polyester has been improved in the earlier stage, but it has not reached the expectation of the enterprises. The inventory effect of individual enterprises is remarkable.

It is understood that the current POY stock in more than 13-15 days, FDY stock in more than 17-20 days, DTY inventory in 25-28 days.