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    Polyester Filament Prices Fell Nearly 25%-35% In Recent Years, But Profits Were Rising.

    2020/3/23 11:21:00 0

    Polyester Filament Price

    10 days! U.S. stocks fuse 4 times! The global financial market is howling. "Trump style fuses" + the continuous fermentation of the new crown disease, overlaying the crude oil crash, has hit investors' confidence on the brink of collapse.

    Polyester prices have been repeatedly explored.

    Financial markets have entered a bear market, and futures markets have not survived. With the collapse of crude oil prices, the polyester market is also at risk. PTA, ethylene glycol lack of power, cost support is insufficient, polyester filament prices have repeatedly bottomed out. As of 20 days, polyester filament FDY product price to 6400 yuan / ton, POY product price in 5830 yuan / ton, DTY product price in 7850 yuan / ton.



    The price of polyester filament has been declining, and it has hit a low level in recent years. Compared with the same period in previous years, the price of products dropped by nearly 25%--35%.



    The price of polyester keeps falling, but profits are showing brightest. Especially after the Spring Festival, the profits of polyester filament products are "rising step by step", and can even be described as "soaring to the sky".

    In 2019, FDY product performance was relatively stable, in the first half of the year has been in a high profit state, but from October, the profit space has been shrinking, has been in a state of loss. After the Spring Festival of 2020, FDY products began to turn around and gain profits. The profit margins continued to expand and even reached the commanding heights of profitability over the past year.



    POY products have been in a state of volatility, but they also suffered losses in the first half of 2019. After the Spring Festival of 2020, the profit level of POY products increased continuously, and once rushed to nearly 800 yuan / ton.



    In terms of DTY, the level of profitability has always been lower than that of POY and FDY. Compared with the other two products, DTY products have been in an unpaid state. But after the Spring Festival this year, profits began to soar and even exceed 1000 yuan.



    From the above three forms, we can clearly see that the profit trend of polyester filament products has always been following the trend of price rise and fall. But from this extraordinary Spring Festival, profits and prices began to "diverge": the price has been going downwards, but profits have been rising.

    PTA costs support collapse

    PTA is one of the most important raw materials for polyester filament, and the rise and fall of its price plays a decisive role in the profit of polyester filament.

    In the first half of 2019, the price of PTA has been at a high level. It is no exaggeration to say that it is the "King" of the polyester industry chain. However, in the second half of the year, PTA began to drop to the altar, and the price was much lower than that in the first half of the year. Its own high storage dilemma also makes PTA's decline not so easy to end. Up to now, the price of PTA's internal disk is only around 3415 yuan / ton, which is approaching the historical low level.

    PTA prices continue to take a downward path, so for polyester filament, the cost side loose, profits go up naturally.



    The high profit of polyester filament is not a good thing for polyester manufacturers.

    It seems that the profit is very high, but it is not necessarily profitable.

    Years ago, weaving factories tended to store goods for 2-3 months. Because of the outbreak of the disease, the weaving factories had been delayed and the raw materials had not been used up. After resuming work, most manufacturers still choose to wait and see, except some manufacturers just need to purchase, resulting in the production and sale of polyester filament has been relatively low after reworking.

    According to the statistics of China's silk net, the average production and sale of polyester filament after maintenance resumed nearly 4-6.



    The main reason for the failure of the weaving Market is poor demand.

    The outbreak of the new crown outbreak in China, the spread of the epidemic to the global market, the collapse of the US stock market and the collapse of crude oil have great impact on the weaving factories. Since the resumption of work, the market has been at a low ebb: difficulties in orders, cancellation of orders, urgency in foreign trade, price reduction in fabrics, shrinking profits, and even a lot of cloth bosses, with plans to reduce production and capital preservation. There are also many cloth owners predict that this market, optimistic that the first half of the year will not be good, far away, it may not be good throughout the year.

    The market demand for weaving is low, and the demand for polyester is not good enough. The profit of polyester is too high to sell. It's just empty talk.

    At present, the profit of polyester has been in a higher position, but polyester manufacturers are still worried. Such a low price, such a high profit, has formed a contradiction, breaking the balance of the industrial chain. The key is that downstream manufacturers do not buy it. The road to polyester is not easy.

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