Towards the end of May, the ups and downs of the polyester industry chain have affected the mood of textile people, which can be described as a mixture of sadness and joy!

What is gratifying must be the high production and sales of polyester filament. The high production and sales for four consecutive trading days not only boosted the price focus of various products in the polyester industry chain, but also directly eased the decline in polyester prices. Due to the high inventory pressure of the manufacturer, nearly five or six days of inventory were cleared at once, which was a surprise.

However, after the great joy , but sadness arises spontaneously! Due to various considerations such as insufficient order follow-up, financial pressure, and uncertainty about raw material prices, downstream weaving manufacturers’ purchasing enthusiasm has once again weakened, and the mainstream production and sales of polyester have returned to dullness. Especially on the 29th, the mainstream production and sales of the market plummeted to around 40%, and then recovered slightly. The mainstream production and sales of polyester were around 50%-70%.

Not only has the production and sales of polyester declined, but the prices of all parties in the polyester industry chain have also shown signs of falling. The first thing to bear the brunt is international oil prices. Following the sharp drop last Thursday, the market fell sharply again on Thursday night. Oil prices fell nearly 5% from the intraday high, hitting a two-month closing low. Market participants generally believe that the recent continued pessimism in the market is the key reason for the weakening prices. In addition, PTA spot futures and ethylene glycol market conditions have been loose.

In fact, prices rise and fall within the range that manufacturers can bear, but here, we have to focus. The most sad thing is that the profits of various products in the polyester industry chain – “Flying away” !

Once bitten off most of the cake of the polyester industry chain PTA’s profits plummeted!

As early as April, when the entire polyester industry chain was in a sluggish situation, PTA could be said to be the leader, taking over the polyester industry in one fell swoop. Most of the pie in the ester industry chain. If one word were used to describe PTA’s performance, it would be “stable”; the price of upstream PX collapsed, “brother” MEG fell into deep losses, and the downstream polyester filament continued to fall, but it did not affect PTA’s cash flow to stand out from the crowd.

I never expected that PTA, which was once so arrogant, would see a cliff-like decline in cash flow in recent days. Not only are the four-digit profit margins gone forever, but the three-digit profits have dropped to levels around the Spring Festival. At present, PTA cash flow has dropped to around 420 yuan/ton. Compared with the high of 1,392 yuan/ton in early May, it has dropped by 972 yuan/ton, a drop of nearly three times.

The soup is almost gone, and the profits of polyester filament are hovering on the edge of the profit and loss line!

If PTA had eaten up all the profits of the entire industry chain some time ago, then only polyester filament would be left with a little bit of water. You can share it, but you can’t even order soup and water from the rest of the products. However, in recent days, various polyester filament products have been hovering near the profit and loss line. Even if the production and sales were so hot in the past few days, they failed to have a big boost to polyester profits.

From the perspective of specific statistics, the current profit margin of FDY150D is 164 yuan/ton, which is basically the low profit level this year. Compared with the high profit in April, it is significantly higher. It fell by nearly 800 yuan/ton. POY’s profit once fell into a loss dilemma, and now it is only hovering near the profit and loss line. The current profit margin of 150D is only 64 yuan/ton. If the market fluctuates slightly, it will fall into a loss situation. As for DTY, the profits of DTY manufacturers have been in a weak state since this year. Recently, the pressure has doubled, and losses will occur if you are not careful. </p