Price trend:

Last week (December 1st-5th), the price of polyester filament remained generally stable, with only slight fluctuations in individual specifications. Most major factories maintained stable pricing, with occasional small discounts offered during transactions. As of December 5th, the mainstream polyester filament factories in Jiangsu and Zhejiang quoted POY (150D/48F) at 6,500-6,700 RMB/ton, DTY (150D/48F low elasticity) at 7,750-8,000 RMB/ton, and FDY (150D/96F) at 6,750-6,900 RMB/ton.

Market Analysis

Cost factors provided bottom support: Although the crude oil market, at the source of the industrial chain, was experiencing mixed bullish and bearish forces, geopolitical tensions posed potential upside risks, and OPEC+'s production adjustment strategy limited the volatility of oil prices. Meanwhile, the PX segment was experiencing tighter supply due to maintenance at facilities such as Sinopec Quanzhou, and the PTA segment was also seeing some plant maintenance due to low processing fees, easing supply pressure. These factors contribute to a strong and volatile raw material market, establishing a solid cost floor for polyester filament prices and preventing them from falling.

Supply-side pressure remains relatively manageable: Last week, there was no concentrated increase in polyester filament production. Coupled with the temporary tightening of supply in upstream PX and PTA markets, the overall supply did not become excessively abundant, thus avoiding a sharp price decline due to oversupply.

Demand-side factors were suppressing price increases: The textile industry was in its traditional off-season, and downstream weaving factories generally had inventories of 30-60 days. High inventory levels were forcing factories to reduce production or even shut down, with some even planning to take early holidays. Furthermore, weaving factories were mostly fulfilling small, scattered orders left over from previous periods, with very few new large orders. Procurement is limited to essential needs, resulting in weak demand for polyester filament and making it difficult to drive up prices.

Market sentiment guided the stable pricing strategy: Both polyester filament manufacturers and downstream companies were cautious. Manufacturers were aware of the weak demand and understand that rash price adjustments could affect sales and inventory turnover, thus they were mostly maintaining stable prices; downstream companies, due to insufficient orders and high inventory levels, also had no intention of making large purchases. The cautious attitude of both parties further contributed to the stable price of polyester filament last week.

Market outlook

Overall, SunSirs believes that the price of polyester filament was mainly influenced by the interplay of cost support and weak demand. Strong fluctuations in raw material prices provided support for the price floor, while high inventory levels and limited new orders at downstream weaving factories, coupled with purchasing primarily driven by essential needs, constrained price increases.  Ultimately, this resulted in stable prices for polyester filament last week. In summary, significant price fluctuations in polyester filament yarn are unlikely, and some manufacturers may offer discounts to stimulate sales, leading to overall narrow price fluctuations in the short term.

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