Price trend

According to the SunSirs commodity market analysis system, as of September 22nd, mainstream polyester filament mills in Jiangsu and Zhejiang were quoting prices for POY (150D/48F) at 6,600-6,800 RMB/ton, polyester DTY (150D/48F low-stretch) at 7,900-8,150 RMB/ton, and polyester FDY (150D/96F) at 6,900-7,200 RMB/ton. The overall market was stable, but slightly sluggish. Since the weekend, polyester filament prices in Jiangsu and Zhejiang had declined by 50-150 RMB/ton, with some negotiated discounts, especially for high-inventory varieties. Actual transaction prices were generally favorable, while DTY prices were under pressure and falling slightly. Downstream purchases were primarily on-demand, primarily driven by rigid demand.

Analysis review

Limited cost support: While prices for PTA, a key upstream raw material, had seen a slight increase recently, prices for MEG, another raw material, declined. Overall, polyester raw material cost support remained insufficient, making it difficult to significantly boost polyester filament prices.

High inventory pressure: Polyester filament inventory levels varied across polyester mills. Data shows that factory inventory days increased by 6.74% month-over-month to 20.6 days. This inventory pressure had led mills to be more willing to ship, and negotiating discounts to facilitate transactions was a common strategy.

On-demand procurement: Downstream weaving and texturing companies were temporarily adopting a strategy of purchasing based on demand. Although the autumn market in China Textile City saw a month-on-month rebound, pushing up transaction prices and volumes for grey fabrics and apparel fabrics, fabric inventory levels remained under pressure. This had led downstream companies to be more cautious in purchasing raw polyester filament, with more frequent purchases based on demand and less willingness to stock up on large quantities.

The industry was operating at a high load: The capacity utilization rate of polyester filament currently remained at a relatively high level of 91.54%. The high supply will also exacerbate the pressure of the supply-demand contradiction in the face of weak market demand.

Market outlook

SunSirs believes that, overall, polyester filament prices are likely to be weaker in the short term due to insufficient cost support, high inventory levels, and the approaching National Day holiday. The possibility of price reductions for some slow-moving and high-inventory varieties cannot be ruled out.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.