During this period, the temperature continues to be “high fever”, but the recent polyester market is in sharp contrast to the temperature. PTA fell after a surge, polyester filament production and sales were sluggish, and the polyester market encountered a “stumbling block.” In July, the polyester market turned from strong to weak, which can be said to be a bit unexpected, but it still makes sense when you think about it carefully.
Unexpected – both upstream and downstream are empty, and the good market is gone
Since July, the two products PTA and polyester filament have been extremely closely related. It really feels like both prosper and lose. In mid-July, due to the news and tight supply and demand, PTA was like a “little bull” leading the entire polyester market. PTA rose strongly, ethylene glycol rose steadily, and polyester filament happily rose. From early July to mid-July, PTA futures rose by more than 500 points, the ethylene glycol electronic market also closed steadily around 400 points, and the increase in polyester filament reached more than 1,000 yuan/ton. In July, the polyester market welcomed a “small climax”. When various raw materials were rising, the downstream market was also very cooperative.
Good times come and go quickly. When PTA lost the support of funds, the market began to slump, and PTA futures began to plummet. As of July 26, PTA futures had fallen for the sixth consecutive time, and the futures price had fallen back to around 5,150 points. Polyester filament, which has lost its cost support, is also worried about “shipping” at the end of the month. After the wave of stocking in early July, most downstream companies had a certain amount of stock on hand. Coupled with more than 10 days of high temperatures, some downstream companies stopped production and reduced production, which directly weakened the demand for polyester filament. Judging from the production and sales data monitored by China Silk Capital Network, in the past 10 days, the production and sales of the polyester market have remained at 50-60%. The continued weak demand has disrupted the rhythm of the polyester filament market. Without the support from the cost side, and also losing the support from the demand side, polyester manufacturers failed to reverse the market status quo of mediocre production and sales even if they held two consecutive POY4+2 meetings. This is how the polyester filament market is booming in the off-season. It’s gone.
It makes sense – the terminal off-season effect gradually appears in July, and the high temperature restores the off-season nature
After entering July, the entire fabric market in Jiangsu and Zhejiang began to show signs of weakening, especially in Changxing, Haining and other places. The rush for goods and price increases in June disappeared in July. Before the high temperature comes, the terminal weaving market still maintains around 70% startup. However, as the market weakens, fabric prices are difficult to rise, and with raw material costs continuing to be high, weaving manufacturers’ production enthusiasm has dropped significantly. In addition, due to the continued influence of high temperature weather, some weaving manufacturers have begun to reduce their operating load. According to statistics, since last weekend, the operating situation in Jiangsu and Zhejiang has undergone major changes, and currently only remains between 60% and 70%. In addition, in addition to the drop in operations of weaving manufacturers, the production of dyeing factories has also been greatly affected by high temperatures. It can be said that the recent high temperatures have caused the entire fabric market to directly shift from best-selling in the off-season to slow-selling in the off-season.
Judging from the current situation, the high temperature is still continuing, and the fabric market has officially entered the off-season due to the high temperature. Terminal demand has weakened, and the tight supply and demand pattern of the polyester market has gradually changed. The cost benefits are limited, and downstream demand is blocked. The polyester filament market is at a deadlock. July is about to pass. In the coming August, if there is no big benefit in the polyester filament market, further weakening is not ruled out. possible.
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