Polyester Filament: Happiness Index, Raw Material Decide

Before the May 1 holiday, polyester filament enterprises were blocked by higher inventory and more price promotions.

After a short wave of management, the profit of polyester filament is narrowed. After the holiday, enterprises are running steadily, the discount continues, and the market shows a weak stalemate.

However, the raw material PTA continued to rise during this period. The spot closing rate increased slightly. Although ethylene glycol was used in the raw material of ethylene glycol, the raw material of the polyester product was relatively small, so the price of ethylene glycol did not ease the cost pressure of polyester filament.

Source: lung Chung

As shown above, the peak profit of PET filament is the upstream stage of raw material price.

When raw material prices were raised, especially when PTA prices were rising, the purchasing enthusiasm of the downstream enterprises increased, and the enthusiasm of purchasing increased. The cost of polyester filament enterprises increased correspondingly, and the profits increased gradually.

But since the end of this year, the demand for terminal has been slow up and the demand has been overdrawn in advance, and the downstream has been unable to continue to purchase, so the market has entered a stalemate stage after a brief warming up. With the accumulation of inventory, polyester enterprises have to open the sales promotion mode.

At this time, if the trend of raw materials deviates from the trend of polyester, enterprises will be in a dilemma between profit and production and marketing.

Price changes of polyester filament and raw materials

Source: lung Chung

By comparing the trend of polyester filament and raw material after the festival, we can find that the mainstream price of polyester filament, including raw material glycol market, has dropped by more than 200 yuan / ton, while PTA, which is the main raw material of polyester, has increased by 30 yuan / ton. As of PTA, the spot closing price of the East China market is 6630 yuan / ton, which is at a higher price, resulting in a continuous narrowing of the profit of the mainstream POY model, and a profit loss situation.

The processing fee of PTA is still high, which aggravates the resistance of downstream weaving enterprises, and the pressure of polyester filament production and marketing has entered the storehouse stage.

At present, polyester filament enterprises are facing difficulties. The key to the problem is that profits are concentrated in the upper reaches. Reducing the burden of enterprises is only a temporary relief of inventory pressure, and can not solve the fundamental problems. At the expense of profits, the profits of the enterprises will not be bought, the prices of raw materials will remain high, the interests of polyester and terminals will be damaged, and the development of the industry will enter a vicious circle, which is not beneficial to the development of the industry.