Since late April, polyester factories have had price cuts and promotions from time to time, resulting in a clear differentiation between production and sales in the market. Some market participants predict that the polyester market may heat up after May Day. However, whether it is during the May Day holiday or a few trading days after the holiday, polyester factories lower prices or offer discounts, but they seem to have little effect.
It has been in decline for two or three weeks. Among the main tone of falling!
In the past half month, all polyester filament products have been in a downturn. Although the market has not experienced a large-scale plunge, polyester manufacturers often lower their quotations or offer promotional offers from time to time. In the past two or three weeks, the quotations of mainstream products in the polyester filament market generally have room for reductions of 600-900 yuan/ton, and some products have seen larger price drops or more obvious discounts for large quantities.
Mainstream production and sales are tepidly moving forward, and high production and sales are gone forever!
In the past, as soon as the price of polyester manufacturers adjusted, the purchasing enthusiasm of the downstream market increased, and production and sales were booming; but now the market does not buy it. Although the current operating load of the downstream weaving market is still high, the operating rate in various regions is generally concentrated around 70-90%. According to the conventional rigid demand procurement, the purchasing ability of polyester raw materials is not weak. However, facts have proven that the mainstream production and sales of the polyester market can only move forward tepidly, and will not be in a state of low production and sales. However, the mainstream production and sales are mostly around 60-90%. The high production and sales that can ignite the market are gone forever, and preferential promotions It is also difficult to stimulate purchasing enthusiasm in the downstream market.
The slow destocking process increases the risk of continued inventory accumulation!
In fact, since the Spring Festival, the destocking status of polyester manufacturers has not been as good as the same period last year; especially in the recent stage, there is a lack of positive stimulation for market production and sales, and the overall market inventory is difficult to show. reduce. As the downstream weaving market slows down its peak season and even enters the off-season early, coupled with the fact that the polyester load has always been running at a high level this year, polyester manufacturers have increased the risk of continued inventory accumulation. Specifically, the inventory of POY manufacturers is relatively low, but for small and medium-sized DTY manufacturers, the inventory accumulation speed may be further accelerated.
High profits are gradually being squeezed out, hovering at Near the profit and loss line!
Nowadays, polyester manufacturers are not only facing a continuous increase in inventory, but more importantly, they are also facing a situation where profits are constantly being eaten up. The high profits that we were proud of before have been gradually squeezed. Especially after the May Day holiday, the profits of various polyester filament products are very weak.
According to statistics from China Silk City Network, in just about half a month, polyester filament products have fallen from high profitability to the edge of the profit and loss line. Among them, FDY and POY products are still at a slight profit, but DTY has already suffered a small loss, and there is a risk of further increase.
What I have to mention here must be the raw material PTA. In recent years, PTA has been booming. In the entire polyester industry chain, PTA’s profit situation is “outstanding”, whether it is upstream or upstream. PX is still the downstream polyester filament, and the profit margins have been swallowed up.
Price has fallen, production and sales are weak, inventory is high, and profits are low. For the polyester filament market, it is really going to faint!
Nowadays, the profits of polyester manufacturers have been squeezed to the point where there is no profit left. In order to reduce inventory pressure , will the polyester market choose to reduce its operating load? How to reduce inventory pressure by reducing supply? We can only wait for the development of the market in the future, but we still hope that the polyester industry chain can return to a balanced state! </p
