Due to a series of negative impacts such as environmental protection regulations and high temperatures, the operating rates of the weaving market in various downstream regions have generally been reduced in recent times. The transaction atmosphere of the polyester filament market was also weak for a time, and production and sales fell from highs, hovering at 50-60%. Just when the market is questioning, no one wants to buy the raw materials? Polyester may need to explore the bottom?
The market is changing rapidly! On August 9, the convening of the FDY Alliance meeting suddenly stimulated the enthusiasm for purchasing in the downstream market, and the enthusiasm increased rapidly. On the 10th, market production and sales exceeded 200%, and transactions were booming. Some manufacturers even closed their orders and were reluctant to sell, leading to a rise in the afternoon. Since then, the polyester filament market has become unstoppable. Not only have the prices of various products continued to rise, but the overall transaction atmosphere has been significantly boosted. Production and sales have increased. Mainstream production and sales have generally exceeded 100 for more than ten days.
The polyester market is full of surprises! Good market conditions are back and stocks are running low!
In addition to the continued improvement in production and sales, the polyester market is full of surprises! The good market that ended abruptly in mid-to-late July has returned again. The prices of various products in the polyester filament market have stopped falling and risen. The prices of mainstream manufacturers, especially FDY and POY, have increased significantly, with an average daily price of about 50-100 yuan/ton. Room for upward adjustment. It is not difficult to see from the figure below that although the month-on-month data has fallen slightly, the prices of polyester filament products are still in a favorable state year-on-year. In particular, the price of POY has increased by more than 1,000 yuan year-on-year, an increase of about 17.5%; FDY and DTY The year-on-year increase in product prices also exceeded 10%.
The polyester filament market production and sales have exceeded 100 for ten consecutive days, which naturally further reduces the mainstream inventory level; now the overall inventory of mainstream polyester manufacturers is already below the safety stock level. According to statistics from China Silk City Network, the current overall polyester market inventory has been reduced to around 5-16 days; FDY inventory is concentrated at 3-9 days, POY inventory is around 4-7 days, and DTY inventory has been adjusted to 15 days. -near 24 days.
Behind the surprise, the misery of polyester manufacturers! Costs are rising and profits are shrinking!
However, behind the surprise, lies the pain and tears of the polyester manufacturers! Cost suppression, shrinking profits become a pain! Driven by factors such as the boost in futures, the prices of upstream polyester raw materials PTA and ethylene glycol have increased in recent days. The upstream raw materials have been rising steadily, which naturally compresses the profit margins of various polyester filament products. In the recent period, the profits of polyester manufacturers have shrunk, with only POY performing reasonably well. In particular, FDY profits have shrunk to a certain extent year-on-year and month-on-month.
Whether the market expects raw materials to be in a state of occasional rise, or is driven by speculative demand, the author believes that polyester manufacturers will be strong in the short term amid rising costs, shrinking profits, rebounding production and sales, and generally low inventories. Price awareness is relatively strong.
Reminder: Due to environmental factors, all three monomer manufacturers across the country have been ordered to stop production. The cation equipment of several major manufacturers is facing the possibility of reducing production. Where will the price of cation products go…
It is understood that trimonomer, as an additive in the production process of cationic products, is indispensable; under environmental protection rectification, trimonomer polyester manufacturers are also among those to suspend production, which may set off a gust of wind in the cationic market. In addition to cationic yarn, it cannot be ruled out that other products in the polyester market may face production reduction and suspension in the future.
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