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SunSirs: Poor Demand Drags down, Polyester Filaments in the Chinese Market remain Weak

  On December 22, the polyester filament market in the Chinese market continued to decline slightly. The price of the factory is large and stable, and some preferential promotions. According to the price monitoring of the business agency, the current mainstream polyester filament factory in Jiangsu and Zhejiang provinces offers polyester POY (150D/48F) at 6750-7150 yuan/ton, and polyester DTY (150D/48F low elasticity). At 8400-8800 yuan/ton, polyester FDY (150D/96F) is quoted at 7000-7450 yuan/ton.

  International crude oil rebounded and cost support increased. The main contract settlement price of WTI crude oil futures in the United States was reported at US$71.12/barrel, an increase of US$2.51 or 3.7%, and the main contract settlement price of Brent crude oil futures was reported at US$73.98/barrel, an increase of US$2.46 or 3.4%. From the perspective of supply and demand, the output level of OPEC oil-producing countries is still far below the previously agreed target; superimposed on the benefits of geopolitics, Libya’s port was blocked again due to the war. In addition, the price of natural gas in Europe has soared, and electricity prices in most regions have hit a record high, driving up the price of alternative energy oil.

  Affected by this, the PTA market maintained a slight rebound. Today, the average spot market price in East China was 4723 yuan/ton, an increase of 1.81% from the previous day and a year-on-year increase of 30.91%. The main force of PTA futures 2205 closed at 4784, up 178, or 3.86%. At present, domestic PTA devices have been restarted one after another, and the industry start has increased to more than 71%. The operating rate is easy to rise but difficult to fall. At the same time, the demand side continues to be affected by terminal weakness, and the market has insufficient enthusiasm for trading, and the contradiction between PTA supply and demand has once again intensified.

  In the terminal textile market, the outbreak of the epidemic caught people off guard. The domestic market for autumn and winter fabrics in Xiaoshan and Shaoxing was weak, and foreign trade orders were even worse. Most downstream companies have no orders to make. The lack of orders has caused downstream manufacturers to accumulate inventory. The inventory of woven grey fabrics in Jiangsu and Zhejiang is about 32 days.

  Although the cost side was boosted by the rebound in crude oil, the current sluggish demand has become the biggest obstacle to the development of the entire market. The countdown is now before the Chinese New Year. In the next January, textile factories will start a holiday mode. The seasonal off-season demand in January and February will drag down the polyester yarn market.

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