SunSirs: Polyester Filament Prices Rebounded After Falling in July

Price trend

According to the commodity market analysis system of SunSirs, the price of polyester filament rebounded after falling in July. As of July 31, the mainstream polyester filament factories in Jiangsu and Zhejiang quoted POY (150D/48F) at 6,600-6,800 RMB/ton, polyester DTY (150D/48F low elasticity) at 7,800-8,050 RMB/ton, and polyester FDY (150D/96F) at 6,900-7,200 RMB/ton.

Analysis review

In the first half of July, the production and sales of polyester filament maintained at 30-50%. The effect of enterprises' profit-sharing was not good, inventory continued to grow and prices fell. In the middle and late part of the month, downstream users concentrated on replenishing their stocks, production and sales increased, enterprises' destocking effect was good, and the transaction center fluctuated upward.

Cost side

Raw material prices significantly impacted polyester filament. In the first half of the month, crude oil prices fluctuated within a narrow range, providing limited support. As of July 30, the average PTA market price in East China was 4,889 RMB/ton, down 3.79% from the beginning of the month.

Supply and Demand

On the supply side, leading polyester filament manufacturers implemented production cuts in July. Combined with the expected continued decline in operating capacity due to previous inventory pressures, supply pressure had eased somewhat. On the demand side, companies' profit margins in the first half of the month were ineffective, resulting in compressed cash flow. Manufacturers began to hold back on selling at low prices, keeping prices relatively firm. Starting from mid-month, despite July being an off-season overall, concentrated replenishment of inventory by downstream companies led to increased polyester filament production and sales, reduced inventories, and increased prices. The positive results of companies' destocking efforts and their increased willingness to support the market also contributed to price increases.

Future outlook:

SunSirs believes that under the atmosphere of warming macroeconomic sentiment at the end of the month, buying sentiment was stimulated, the demand side increased slightly, and prices fluctuated upward. In the medium and long term, price recovery needs to wait for the peak season orders to be fulfilled and the tariff risks to become clear.

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