Under the drastic changes in the domestic and international environment this year, the polyester industry chain is facing complex challenges. Especially since May, the high-cost pattern has intensified, and the contradiction between excessive costs and weak demand is constantly intensifying. The entire industry chain, from naphtha and ethylene to PTA and MEG, down to polyester filament, staple fiber and chips, is deeply in the red. As for the terminal texturing and weaving companies, the pressure is even greater.
The polyester filament market is “too much to bear”
Rumors of production cuts are rife in the market
The recent roller-coaster trend of raw materials has made the polyester filament market “too much to bear”. With the continuous decline of polymerization costs, downstream users are highly motivated to sell off, polyester filament production and sales are stagnant, and the news of “production cuts” in the market has reappeared.
Since the Dragon Boat Festival holiday, polyester raw materials, led by PX, have continued to rise, and the polymerization cost once rose to more than 8,000 yuan/ton. Due to cost pressure, polyester filament has fluctuated upwards. Taking POY150D/48F as an example, the price has been rising after the holiday, and the market transactions The center of gravity closed at 9350-9400 yuan/ton, an increase of nearly 9% compared with the transaction center at the end of May.
Although the price of polyester filament continues to rise, the cash flow of polyester filament is still negative because the increase is not as high as that of raw materials. Since the beginning of this week, PX and PTA have been struggling at high levels, opening a downward channel. As a result, polymerization costs have dropped, and polyester filament cash flow has recovered slightly. However, most models have still failed to turn losses into profits. Downstream users are highly sentimental about selling, polyester filament production and sales are stagnant, and there are rumors of production cuts in the market.
Spot circulation is becoming increasingly tense
Polyester bottle pieces are proud of spring breeze
But when everyone is faced with the situation of being unable to reveal the pot, only one species is proud of it! In terms of profit alone, it hit a record high!
The export volume remains high, and domestic tradable spot resources are tight. In addition, in May, Dalian Yisheng’s 700,000-ton unit was shut down for maintenance. Recently, the Sanfangxiang unit was unexpectedly reduced in load, causing spot circulation to become increasingly tight. Although the price of polyester bottle flakes has adjusted back along with the cost, the spot supply is tight, which supports the profit of polyester bottle flakes to remain high. As of the close of trading on June 20, the profit value of polyester bottle flakes was 720.40 yuan/ton, a decrease of 597.8 yuan/ton from the high point of the year, and an increase of 299.74 yuan/ton from the low point of the year.
From the perspective of the entire industry chain, the current destocking effect of polyester companies is slow. Under the dilemma of high inventory and low demand, “reducing production” seems to be a strategy to protect prices. As the temperature gradually rises, terminal orders are not good. Under the circumstances, the downstream weaving industry is expected to have a decline in production capacity, and the supply of most polyester varieties may be reduced due to the mismatch between supply and demand.
</p
