Price trend

The commodity market analysis system of SunSirs showed that the center of polyester filament prices were partially raised on August 27. As of August 27, the mainstream polyester filament factories in Jiangsu and Zhejiang Province quoted POY (150D/48F) at 6,800-6,950 RMB/ton, polyester DTY (150D/48F low elasticity) at 8,000-8,150 RMB/ton, and polyester FDY (150D/96F) at 7,000-7,200 RMB/ton.

Analysis review

Polyester filament prices have recently shown a steady upward trend, with several major manufacturers raising their prices. Since August, the polyester filament market has experienced a continuous price increase. On August 11, 12, 13, 20, 21, and 26, major manufacturers announced price increases of 50 RMB/ton, directly driving the steady upward trend in market prices.

Cost Support: Prices for PTA, the main raw material, had been relatively strong recently, temporarily hovering around 4,850-4,870 RMB/ton. Strong PX prices had also provided support for PTA, and several PTA manufacturers had announced maintenance plans, leading to an expected tightening of supply. These factors had provided cost support for polyester filament prices.

On the supply side: Previously, mainstream production companies had jointly reduced production and adjusted the supply scale to maintain market order. This eased the contradiction between supply and demand to a certain extent and provided support for prices.

On the demand side, downstream weaving machine operating rates recently rebounded slightly. Furthermore, with the traditional peak consumer season of September and October approaching, the market was optimistic about a subsequent demand recovery, particularly in niche markets like Oxford fabric and luggage fabric. Furthermore, the 90-day extension of the window for some US tariffs on China had also boosted export expectations. Major manufacturers were strongly willing to maintain prices.

Inventory levels: The industry's inventory pressure has eased recently. According to recent data, POY inventory was around 22 days, FDY inventory was around 25 days, and DTY inventory was around 34 days, indicating an improvement in the overall inventory structure compared to the previous period. This decline in inventory had also provided some support for prices.

Market outlook

SunSirs believes that support from the cost side is expected to remain strong, coupled with the traditional peak season demand expectations and companies' willingness to maintain prices. These factors may continue to push prices upward. In the short term, it is likely that polyester filament prices will remain volatile and stronger, and it’s still needed to pay attention to the actual recovery of downstream demand.

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