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    Low Demand, High Inventory, Polyester Factory Price Promotions

    2019/7/18 13:35:00 0

    Polyester Filament

    Some time ago, polyester filament can be called wind and rain. But in the near future, the polyester market can only be described as horrible: the factory began to reduce sales promotion, but the production and marketing remained weak and not as expected. In addition, the PTA trend of raw materials was also volatile, and the cost side was also temporarily bad.

    The present polyester thread is an old saying that comes out and always comes back.


    There is no good support for raw materials.

    Raw material side, because of the sluggish downstream demand, PTA started to decline to 80.12%, but the Fuhai PTA device's parking overhaul makes the spot circulation tighter, the supply structure is good, and the manufacturers are very expensive.

    In terms of ethylene glycol, there was an outbreak of short positions in group 9. The chemical market was adjusted. Some of the arbitrage funds were re involved. Ethylene glycol was heavily depressed. In addition, the production and marketing situation of the downstream polyester plants turned pale, and demand began to decrease gradually. The downward trend of ethylene glycol was facing a bigger test, so the short-term ethylene glycol would still be in a weak trend.

    Decline in start-up load under production and marketing downturn

    This week polyester filament production and marketing median value of 65%, compared with last week, a substantial rebound, but still can not withstand the trend of price fall. In the downturn of production and marketing, industry inventories also rose. As of last weekend, POY stocks rose for 6-10 days, up 2 days from last week; FDY stocks rose 11-17 days, up 2 days from last week; DTY stocks increased 19-24 days, up 2 days from last week. In addition, under the influence of low production and sales and profits, the start-up load of polyester filament enterprises has also been greatly affected. The devices have chosen to reduce production or overhaul, and the operating rate is decreasing.

    For example, Ningbo's output began to decrease by 20% in July 9th, which involved about 100 thousand tons of capacity.


    Lower demand in the lower reaches

    In the near future, the terminal downstream showed a weak trend, and the sales rate slowed down partially when the order fell.

    For example, spot trading and order shipment are down obviously. The price index shows a certain trend of decline. The price volume of polyester yarn grey fabric, polyester spinning fabric, polyester crepe grey fabric, polyester linen fabric and polyester satin grey fabric has decreased. The blended fiber fabric market has obviously dropped, and the price index has a certain trend of decline. The market price of T/C polyester cotton yarn grey card cloth, polyester cotton poplin grey fabric and polyester hemp grey fabric is down.

    As a whole, the order of garment and weaving industry is insufficient, and the operating rate is relatively low, which makes the replenishment of polyester phase is not enough to boost the price.

    To sum up, the cost side will fluctuate or downward trend in the near future or the general trend. Coupled with the low demand and high inventory, although the supply side may drop, it may alleviate the pressure on the stock market, but it will be a drop in the bucket in the short term. It is expected that the trend of polyester filament will continue weak in the near future. (source: Jin LIAN, China Keqiao textile index)

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