1 Months Down The Market, Or Continue To Decline.

Since mid April, the market price of PET staple has dropped nearly 500 yuan / ton.

The cost side PX is still empty when supply is loose. PTA also lacks cost support. Polyester staple fiber production and marketing remain weak, and the market will remain pressure in the future, and the market will continue to decline in the near future.

The raw material side is empty and the mood is increased.

In the past week, the purchasing power of suppliers has led to tight liquidity, and PTA prices are at a low level.

With the downstream demand weakening, polyester load reduction and cost support insufficient, PTA bad news more, expected supply will gradually increase, bearish sentiment increases.

Glycol, although the recent domestic plant operating rate dropped significantly, but to improve ethylene glycol supply and demand dilemma is still a drop in the bucket, the trend is expected to be weak in the late trend.

Industry profits squeezed

At present, PTA has a high processing fee, but the spot price is still strong. In contrast to the high processing fee of PTA, polyester products are also in sharp contrast. Polyester staple fiber is no exception.

The early release of demand has led to a downturn in the production and sale of polyester staple fiber market. After the May 1 holiday, the industry inventory reached a new high in the year. The pressure of shipment also led to a decline in the price of shipments from suppliers, and the industry profits were gradually swallowed up by PTA.

Inventory rises under weak production and sales

Recently, the cash flow of polyester staple fiber market has narrowed sharply, and some of them have low profit margins and factory inventories are gradually accumulating. In recent years, some factories plan to reduce production and maintenance.

By the end of this Monday, the number of stocks of polyester staple fibers was 11 days, up 3 days from last week, up 5.5 days from the same period last year, and the production and marketing rate was 57%.

Generally speaking, although the production and sale rate of polyester staple has picked up slightly, the pressure of supply and demand has increased.

To sum up, PTA is still strong at present, but PTA is weakening under the influence of polyester repair and production reduction.

The market of polyester staple fiber market is increasing gradually, and the construction is located at a low position, and the supply pressure is slowly released.

In addition, China and the United States trade friction escalated, some textiles or tariffs are facing increased risks.

So in a short time, polyester staple fiber market price or low finishing.

(source: lung Chung, COFCO futures)