Polyester Chips Sliced For Struggle

PTA processing fee has climbed to a high level of 2000+ recently. PTA, which has a lot of profits, has become the brightest star in the polyester industry chain.

Fig. 1 PTA processing fee

Source: lung Chung

At present, the PTA market is still strong, and the processing fee is still high. Because the price of PX is declining and giving up profits, and the big factory is very strong, PTA is unwilling to lower its profit in the expectation of high profit and low inventory, which also causes the pressure of the downstream polyester market to increase.

Fig. 2 polyester chip price and profit trend

Source: lung Chung

In recent years, the cost of polyester has been rising, the pressure of polyester enterprises has appeared, the polyester chip producers in the early stage started to have high positions, and the supply was also abundant. However, the purchasing intention of the downstream terminal market was weak, and the terminal textile market gradually entered the traditional off-season. At present, the profit of polyester chip manufacturers has gradually shrunk, from 448.2753 yuan last month to 51.72 yuan at present, down 88.46%.

The same period fell 88.97%, profits fell with polyester enterprise inventory pressure rise, recent polyester production cut and intention to upgrade.

The market for polyester chips is still weak, and it wants to promote sales and sales recovery by way of price reduction, but the result is very little.

At present, the market lacks solid promotion, and the downstream purchase is still cautious.

Up to now, the mainstream of the semi light section in Jiangsu and Zhejiang provinces is 7550 yuan / ton, and the mainstream is 7650 yuan / ton.

Prices fell 5.03% from a month earlier, down 6.79% during the same period.

Table 1 list of polyester maintenance

Source: lung Chung

Recently, the polyester profit has been squeezed heavily by raw material PTA profit. In the past, the polyester market will generally advance and retreat with the raw materials. But this year, although PTA support is acceptable, the downstream terminal textile market operation rate has been declining, and the purchasing enthusiasm is not good. The national loom starts at 73.56%, and the ring ratio slipped by 0.63% again. Especially this year, the overall opening rate of the loom loom is only kept at a low level near 46.3%, and some small round machine factories in Keqiao are closed.

PTA profit pmission blocked, polyester products were sandwiched in the middle, and polyester stocks gradually increased, so polyester factory under heavy pressure, when the maintenance of the dynamics of concern, polyester factory has finally released the maintenance and production of the expected notice, but it seems that the downstream terminal is still poor performance, polyester production and marketing is still flat.

On the whole, the cost of polyester chips is relatively high, but the downstream slicing and terminal market is weak. The profit of polyester chips is deteriorating under the double squeeze of supply and demand. If the raw material terminal continues to maintain strong, the production or maintenance team of the market or polyester plant will continue to expand.

At present, PET chips are mainly vulnerable to shocks. In the later stage, we should pay attention to the trend of PTA processing fees and downstream terminal orders.