The Price Challenges The Low Point In The Year. Is The PET Staple Market Worried?

Thanks to the Sino US trade war, the price of polyester has again shrunk to its lowest level in nearly a year after a slight rebound last week. At present, the impact of polyester staple stores is expected to be affected. The market is trading light and hopes for the peak season in September.

There is no correlation between costs and benefits.

The PTA terminal has no obvious advantages. At present, the PTA social inventory is estimated at around 1 million 400 thousand tons. In the short term, the installation load is still high, and at the present stage, the raw material stocking stock of polyester plant is high, so PTA has the risk of storehouse. It is not known whether the price of PTA will go up in the coming season.

In terms of ethylene glycol, the port delivery rate is still relatively fast. However, due to the increase in the port cargo ratio, the expected storage capacity is limited. Although demand for downstream polyester is better, terminal demand is still not strong enough. Therefore, in the short term, the device is expected to restart under ethylene glycol or face the pressure of callback.

Product inventory or cumulative expectation

Up to now, PET staple has dropped 1.36% in August, but this month's demand has also improved the situation of phasing out of warehouse after a substantial increase in short fiber production and marketing. Although the situation of high production and marketing has ended, it has returned to its storehouse again briefly. But in late August, short staple stocks are still at a low level in the same period of 4 years.

At present, PET staple will increase to 2-4 days in the cumulative period of product inventory, and the factory will continue to sell in a discount way, so the cash flow may be further reduced.

The demand side market is hard to make waves.

Last week, the Sino US trade war escalated, the domestic market began to billows again, the outgoing mood broke out, the bearish voice rose, and the yarn was dragged down again.

At present, the market of pure polyester yarn is light, and the narrow fluctuation of raw material market has little effect on the price of pure polyester yarn. At present, the supply of conventional models is very tight, and the downstream circular machine is slightly warmer than before. It is estimated that the market price of pure polyester yarn is still dominated by stability. Relatively speaking, polyester viscose yarn is not so lucky. As a whole, the ring and Siro market are still weaker than the vortex spinning. If there is no good news, polyester yarn quotation or exploration.

To sum up, the upstream supply side is geopolitical and the political factors are volatile. People are accustomed to the Sino US trade issue. The downstream yarns are still in high inventory, cash flow problems are serious and orders are few. Textile people can only hope for the peak season in September. The current polyester staple manufacturers are wait-and-see attitude when offering quotations, and prices are stable in the short term. (source: business sinks, long Zhong information)