Limited Release Of Demand Expected Weak Finishing Of Polyester Yarn

According to the price monitoring, the price of polyester yarn remained stable at about 50.8 yuan / ton compared with the spot price of 32S in Shandong Province last week, which remained stable compared with the spot price of 32S / 32t last week. The price of polyester staple fiber changed the weak downward trend in July and rose in August and gradually recovered.

In terms of supply, as of August 20, the operating rate of upstream PTA unit was 87.85%, and that of polyester plant was 87.71%. The operating rate of polyester end was relatively stable. Compared with previous years, PTA inventory is still at a high level. Recently, PTA shut-down and maintenance devices have entered the restart stage. With the increase of supply and the gradual release of production capacity, the domestic demand side is still in a rigid demand situation, and the downstream demand side support is insufficient or the supply exceeds demand. At present, the release of new production capacity is not as expected. Under the relatively limited premise, the downstream polyester processing fee has been gradually reduced. In the future, with the gradual increase of production, there will be greater pressure on the downstream polyester yarn price upward space.

In terms of demand, the comprehensive starting rate of downstream looms has risen slightly since the end of July, and the comprehensive starting rate of looms in Jiangsu and Zhejiang regions has risen to 63.30%. According to relevant data, in July 2020, China's export of textile yarn, fabric and products was US $15.976.9 billion; from January to July 2020, China's export of textile yarn, fabric and products was US $90.080.4 billion, with a year-on-year increase of 31.3%. Since the middle and last ten days of July, some trading enterprises have reported that the situation of receiving orders has improved, the export orders of downstream factories have increased in batches, the orders of domestic autumn and winter fabrics have also improved significantly compared with the previous month, and the orders from Europe and the United States have also recovered a little. The import volume of cotton yarn also increased month on month. Domestic enterprises' demand for imported cotton and cotton yarn recovered, the number of imported yarn rebounded, and the market demand gradually recovered.

This small rebound in downstream demand has driven the market's enthusiasm, and the manufacturers' enthusiasm for production has improved significantly, but it will also bring the possibility of overcapacity. Businesses still focus on maintaining stability in the future market, and the increase of current orders is less than that of the same period last year, and most of them are small orders and short-term ones. The sustainability of late orders is still insufficient. When new capacity is gradually released, downstream enterprises will be faced with overcapacity The situation that the demand can not be digested appears, and it is expected that polyester yarn will be weak in the future.