Polyester filament has fallen again! Since last week, polyester filament prices have been in a downward trend. Coupled with the promotion at the end of October, all the previous gains were retracted.
The price focus of polyester filament has dropped sharply, with the prices of polyester filament POY and DTY falling to the lowest level in the year. The market transaction price of polyester filament POY 150D/48F fell to 6,800 yuan/ton, which was the lowest price during the year. The market transaction price of polyester filament DTY 150D/48F fell to 8,500 yuan/ton, which was also the lowest price in the year.
Driven by crude oil, the polyester market has experienced ups and downs, which is normal. However, it is worth noting that the current price of polyester filament has fallen to the lowest level this year!
Looking back, after the National Day, the polyester and weaving markets ushered in a “carnival”, and the prices of bulk textile raw materials soared, creating a bright arc. Entering November, the price of polyester filament suddenly fell and returned to the low level of the year. What is the reason?
01Polyester factory month-end promotion
First of all, at the end of October, the polyester factory held a month-end promotion. Although it is a customary practice at the end of every month, the price reduction this time was somewhat large. Polyester factories are offering discounts on the basis of lowered quotations. Compared with last week, the quotations have dropped by as little as one or two hundred, and as much as five or six hundred. In the past, the promotion range fluctuated around 100-200 yuan. The promotion at the end of the month is to stimulate production and sales, but the main reason for increasing the price reduction is that the downstream weaving market showed signs of sluggishness in late October. The demand for polyester yarn has become increasingly reduced, and the price reduction has to be increased to stimulate downstream purchasing enthusiasm. .
02Polyester exports decline and inventories rise
Secondly, the export volume of polyester filament has declined for three consecutive months. In September, the export volume was approximately 240,000 tons, a month-on-month decrease of 5.9%. Even during the traditional peak demand season of “Golden September and Silver Ten”, the export situation of polyester filament is still not optimistic. Demand in Europe and the United States has gradually declined. There was no increase in demand during the original peak consumption season, and demand has dropped both at home and abroad. Therefore, the overall export volume of polyester filament has shown a gradual downward trend. Therefore, the inventory of polyester yarn has also been affected to a certain extent and has shown an upward trend.
According to statistics from Silkdu.com, the overall inventory of the polyester market is now concentrated at 29-33 days; in terms of specific products, POY inventory is around 29-32 days, FDY inventory is around 23-32 days, and DTY inventory is around 29-32 days. Around 28-32 days. Polyester factory inventories have further accumulated, so there are also plans to reduce production.
03Demand from downstream weaving companies is sluggish
Sluggish downstream demand and weak polyester production and sales are the most important reasons for the decline in polyester prices. The current Russia-Ukraine war has led to an energy crisis in Europe, the epidemic has led to a decline in consumption in the United States, and Christmas orders have shrunk significantly year-on-year. The downgrade of consumption has caused the volume of orders for China’s textiles and clothing to continue to shrink. As an important chemical fiber raw material for textiles and clothing, the demand for polyester filament has simultaneously declined. Entering November, some weaving factories have issued plans to take holidays at the end of the month. It is conceivable how much downstream demand for polyester yarn will be in the future.
The polyester yarn has returned to a low level this year, which is a mixture of joy and sorrow for downstream weaving enterprises. Fortunately, the costs have finally eased a bit and the pressure has been reduced. Sadly, the decline in polyester yarn has been accompanied by a decline in gray fabrics. However, all the gray fabrics currently sold are produced at high prices, and profits have been squeezed once again.
But while polyester yarns are falling, PTA is rising. Recently, PTA has shown a rapid rebound: the main 01 contract has recorded a maximum of 5,416 yuan/ton, rising by more than 5% during the day. Crude oil also rose to varying degrees. With strong support from the cost side, it may be difficult for polyester yarns to maintain low prices during the year, and there is still a greater chance of bottoming out and rebounding in the future.
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