As we enter late June, the polyester filament market seems to have entered a “big carnival” of price increases in the middle of the year; the traditional textile off-season in July is also full of noises about price increases. A strong wave! The rising trend of polyester filament has been going on for nearly a month, with both volume and price rising!
In this wave of price increases, FDY was the leader in the early stage, leading the products to rise steadily; POY followed closely, but DTY’s performance was slightly calm, and the increase was relatively Minimum. By mid-July, DTY suddenly changed from the low-key trend in the early stage and pulled up strongly; the average daily price increase of mainstream manufacturers reached 50-200 yuan/ton, and some in-demand products even increased by 500 yuan/ton within a day.
In just over a week, some DTY fine-denier products have increased by nearly a thousand yuan, and demand exceeds supply. The prices of DTY products from mainstream manufacturers are still rising, and they have surpassed FDY to become the leader of products.
In terms of year-on-year comparison, according to the statistical data of China Silk City Network, whether it is FDY, POY, or DTY, the average market quotation is year-on-year. All have a certain degree of growth. However, it is not difficult to find from the table below that the year-on-year increase of FDY is relatively low, with an increase of around 9.0%; while the average market quotation of POY and DTY150D has increased by nearly 1,300 yuan/ton year-on-year, with increases of 15.38% and 13.20% respectively.
What must be mentioned here is naturally the profit issue that polyester manufacturers are concerned about. According to calculations based on data from China Silk City Network, it is obvious that POY and DTY profits have increased year-on-year; however, FDY profit margins have shrunk slightly. The position of “Profit King” was defeated. (This is only a theoretical profit. Polyester manufacturers also need to deduct corresponding transportation, labor and other costs, so the actual profit is low)
Of course, whether it is FDY seizing the opportunity in the early stage and taking the lead in pulling up, or DTY accumulating strength and taking the lead; in the final analysis , still benefiting from the boost in upstream raw material costs and the support of low inventory and high production and sales.
Although international oil prices have fluctuated in recent times and lacked strong upward momentum; however, this has not had a great impact on the polyester raw material market. The first to bear the brunt is naturally PTA. Last week, Hanbang’s 2.2 million tons and Liwan’s 700,000 tons maintenance equipment were restarted successively, but the Pengwei unit was delayed for a month. Pemex’s PTA unit with an annual production capacity of 1 million tons had a fire early last week and oxidized. The reactor was damaged and is expected to be shut down until the fourth quarter. Under the influence of this series of supply, the overall supply and demand side of PTA is still relatively tight. Boosted by this, PTA has violently surged past 6,000 points and 6,100 points, setting a 45-month high. Secondly, the ethylene glycol market has also rebounded strongly recently, performing a “magic assist”; the internal quotation has risen to 7450-7500 yuan/ton.
Low inventory – this is the absolute support point for polyester manufacturers , which is also the reason for the arbitrary price increase of polyester filament. According to statistics from China Silk City Network, the inventory level of polyester manufacturers must be at a low level during the year, and the overall polyester market inventory has dropped to 3-12 days. In terms of specific products, POY inventory is concentrated in 2-5 days, and FDY inventory is at 2-5 days. Around 3-6 days, while DTY inventory has dropped to around 10-17 days. Some of the best-selling varieties are in short supply.
Overall, polyester Against the background of high costs and low inventories, manufacturers are quite willing to increase the prices of various polyester products, and the trend of strong upward trend in the short term has been confirmed.Success; without major negative pressure, the decline will not be easy. In addition, the high operating rate of weaving manufacturers today is also what the polyester market relies on.
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