Polyester filament continued down

On March 17, a number of polyester factories reduced the price of polyester filament, although the overall margin is not large, but if starting from the Spring Festival, in addition to a wave of rise after the festival, the trend of polyester filament has been declining.

The recent polyester price is low, on the one hand, because the price of filament before the decline is smaller than the upstream raw materials, last week polyester industry chain overall weak finishing, mainly affected by the weak operation of raw materials and the limited recovery of demand. Polyester operating profit space is limited, the decline is less than the upstream, and the polyester decline is more than 1%-2%.

On the other hand, it is due to the continuous lack of polyester. Since the polyester factory promotion shipments at the beginning of last week, polyester production and sales have again returned to the low state below 40%, and last week polyester weekly start rose 2.6% to 91.5%, inventory accumulation again, giving the polyester factory certain shipment pressure.

Insufficient market demand support

On the whole, although the upstream crude oil market in the early stage is relatively weak under Trump's various tariff policies and OPEC+ production increase expectations, it is far from enough to explain the long-term horizontal trend of polyester filament after the Spring Festival to the recent horizontal decline.

As long as there is no promotion, weaving enterprises seem to be determined not to stockpile inventory, and even the margin of profit is not large enough, and now it has been unable to stimulate production and sales. Last week, weaving end weekly weaving load was flat at 74%, and Jiangsu and Zhejiang printing and dyeing started to fall, down 3% to 76%. Weaving orders are still poor, the factory as a whole in the inventory, of which clothing fabrics are slightly better than home textiles, printing and dyeing also appeared partial home textile construction phenomenon. In the case of high inventory and weak orders and weak future market prices, the procurement of weaving raw materials remains weak, mainly consuming inventory, and the current stock is mostly in 5-10 days, and a small part is around 1 month.

In the short term, the terminal demand is delayed, the profit situation of conventional grey cloth can not improve, no matter how the upstream raw material support situation, the situation of polyester filament stock is still difficult to turn a corner.

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