Polyester Filament: Against The Wind Or Just A Flash In The Pan?

The long silence of polyester filament finally broke out last weekend. As shown in Figure 1, production and sales have risen linearly, and some enterprises have been producing and selling as high as 300%, 400%, 600%, 750%, 1000%, 1200% or even 2000% on weekends. The purchasing enthusiasm of the downstream weaving enterprises is soaring. This wave of purchasing climax has lasted until Monday. On the trading day, the average production and sales of direct spinning polyester filament in Neijiang Zhejiang area is near 300%, and the individual high-end 1000%, the specific production and sales numbers are as follows: 300%, 100%, 200%, 300%, 260%, 200%, 300%, 10%, 300%, 300%, 300%, 300%, 300%, 10%, 12, 12, 12, 12, 12, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 300%, 260%, 200%, 300%, 10%, 300%, 200%, 300%, 10%, 300%, 200%, 300%, 10%, 300%, 200%, 300%, 10%, 300%, 200%, 300%, 10%, 300%, 200%, 300%, 10%, 200%, 300%, 300%, 10%, 300%, 0, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 1, 2, 2, 2, 2, and 1.

Fig. 1 Comparison of production and sale rate of direct spun polyester filament in Jiangsu and Zhejiang provinces

Source: lung Chung

Since the Spring Festival, the polyester filament market has been in a state of low temperature. During the period, the price of PTA increased, and the production and sales of polyester products were getting warmer. At the end of the month, the production and sales of polyester products were hot, which greatly reduced the sales pressure of the enterprises, and the inventory dropped. They also had some initiative for the market, so the significance behind the data was extraordinary.

Previously, the stock pressure of polyester filament enterprises is high. As shown in Figure 2, POY stocks are mostly in 16-19 days, FDY stocks are mostly 22-26 days, DTY stocks are mostly near 30-35 days, and there are 40 days in individual high stores. After the recent promotion, the average stock of polyester filament dropped by 4-7 days, the promotion efforts of individual enterprises were large, and the inventory dropped for more than ten days.

Fig. 2 Comparison of stock days of direct spinning polyester filament

Source: lung Chung

In the near future, the cash flow of the Jiangsu and Zhejiang market is at break even point. At the same time, the PTA price of the main raw material has been slightly increased. The polyester filament enterprises are not able to follow the trend of raw materials because of the high inventory pressure. They can only increase the price with POY150D/48F and relieve the inventory pressure. The market price of polyester filament POY150D/48F has also been continuously reduced to 7400 yuan / ton from the beginning of 8500 yuan / ton at the beginning of the month. After the pressure of inventory pressure has been relieved, the company has rapidly increased the price, and the focus of the market has moved up to 7500 yuan / ton.

Fig. 3 Comparison of mainstream type profit and raw material price trend of direct spinning polyester filament

Source: lung Chung

At present, the terminal demand has not yet fully recovered, and the downstream purchasing is quite cautious. Therefore, after two days of production and sale of polyester filament, the market has gradually returned to the plain. As of 15:30, the average production and sale of direct spinning polyester filament is near 6, and some high-end 200% are near. The drop in production and marketing means that the difficulty of the market is increasing. Fortunately, the inventory pressure has eased moderately. It is expected that there will be a slight increase in the number of individual factories tomorrow, but lack of demand support. The sluggish production and marketing will lead to higher inventory. Next week, the downward pressure on the market will still exist.