Price trend

According to the Commodity Market Analysis System of SunSirs, on July 7th, the polyester filament market continued its promotion mode, and prices showed an overall downward trend. POY (150D/48F), a mainstream polyester filament factory in Jiangsu and Zhejiang, quoted prices between 6,750-7,050 RMB/ton, DTY (150D/48F low elasticity) between 8,000-8,400 RMB/ton, and FDY (150D/96F) between 7,050-7,300 RMB/ton.

Analysis review

Entering July, the terminal textile market entered the traditional off-season of demand, with a reduction in foreign trade orders. The overall production and sales rate of polyester filament was 30% -40%, a decrease of 10% compared to the average production and sales rate at the end of June. At the beginning of July, the inventory of polyester filament increased slightly, and the industry average inventory level was around 24 days, an increase of 18% compared to the end of June. Among them, POY increased significantly, rising 4-5 days compared to the end of June. Under the imbalance of supply and demand, the polyester filament market continued to be weak.

From the supply side, the previous shutdown reduction devices gradually restarted and heated up. As of July 7th, the average capacity utilization rate of the polyester filament industry had increased to over 90%, and the supply had significantly increased. On the demand side, the terminal demand was sluggish, the purchasing enthusiasm of users was not high, the inventory of conventional fabrics was high, and the production enthusiasm of textile production enterprises was not high, continuing to reduce load to avoid risks. In addition, the high temperature weather had also affected the normal operation of the downstream elastic textile industry, further suppressing the demand for polyester filament.

Future outlook:

SunSirs believes that polyester filament market continued to bottom out under the triple pressure of cost collapse, high inventory, and off-season demand on July 7th, and structural opportunities only existed in high-end segmented varieties. The short-term decline has not stopped, and prices are running weakly.

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