Affected by the power restriction policy at the end of the third quarter, downstream weaving, printing and dyeing companies stopped operations on a large scale, demand shrank sharply, and polyester filament faced the risk of inventory accumulation. However, under the support of the cost side, the focus of market negotiations continues to rise. The rise in raw materials continued after the National Day holiday. Due to the pressure on the cost side, polyester filament yarn continued to rise.
Comparison of price trends of mainstream polyester filament models in 2021
The transaction price of polyester filament has continued to decline since September. As various regions implement power rationing policies, demand has plummeted, and the supply pressure of polyester filament has been highlighted. In mid-to-late September, the inventory of polyester filament companies reached the end of the month. Most industry players believe that autumn and winter orders are overdrawn in advance, and it will be difficult for the market to replicate last year’s prosperity during the National Day holiday, so they plan more discounts and promotions before the holiday. With the further pressure from power restriction policies in various places, polyester filament manufacturers have also gradually reduced their burdens, and both supply and demand have dropped. Coinciding with the increase in raw material prices, with the help of the cost side, the plot of polyester filament has reversed and fluctuated upwards at the end of September.
There are many doubts in the market during the National Day holiday. Some industry players believe that the holiday market news is unclear and may remain stable. If demand is difficult to improve after the holiday, “discount negotiations” may be repeated. Again, quite cautious on the eve of the holidays. However, as oil prices continue to rise, raw material prices also rise accordingly, and polyester filament manufacturers are more enthusiastic about raising prices. At this time, due to large-scale parking of texturing companies, Taicang, Xiaoshao, Cixi, Changxing and other places where texturing companies are concentrated have many parking, Due to power rationing, the start-up at the end of the month dropped to around 30%, down 37.8% from the previous week, becoming the lowest point of start-up in the industry after the Spring Festival holiday. Polyester supporting texturing equipment has also gradually reduced its load, and some models have experienced tight order arrangements. Therefore, ” Driven by the market atmosphere of “short supply”, the price of texturing has been soaring, while the prices of other varieties such as POY have also fluctuated and risen. FDY has also increased slightly due to its cash flow losses. To sum up, the polyester filament market continues to rise, boosted by the dual benefits of cost support and supply reduction during the National Day period.
After the National Day, as the power restriction policy in the cluster market gradually slowed down the recovery of downstream demand, polyester filament was out of control! As the star variety of this round of rising prices, DTY has increased by nearly 2,000 yuan/ton in the past month, an increase of more than 1,000 yuan compared with before the holiday. The details are as follows:
Recently heard: Jiangsu has once again launched a production shutdown and power restriction plan, implementing the strategy of starting four and stopping two, textile and chemical fiber What kind of fluctuations will the market experience?
As mentioned above, due to large-scale parking due to texturing, some DTY models are not in stock. The situation is tense, and cost support has boosted the market atmosphere. Polyester filament yarns have been “rushed” in some areas, and the destocking effect has been obvious. The power restriction policy may continue until the end of the year, so the supply and demand of polyester filament may remain low.
Changes in inventory trends of major polyester filament models in 2021 and comparison pictures of polyester filament production starts in 2019-2021
Since the National Day holiday, the destocking effect of polyester filament has been significant, and the current polyester filament production reduction is still increasing. Therefore, in the short term, there is no downside risk for polyester filament. . However, the continuous increase has increased the resistance of downstream users. Currently, production and sales have dropped significantly, so the growth of polyester filament may slow down slightly. In the medium to long term, cost-side changes and policy guidance are key factors affecting the price trend of polyester filament. At this stage, the market is volatile, and it is recommended that industry players be safe and secure. </p
