SunSirs: Cost Side Collapsed and Polyester Filament Prices Fell Weakly Last Week (October 13-17)

Price trend

The polyester filament market showed an overall downward trend last week, with prices shifting downward. As of October 17, mainstream polyester filament mills in Jiangsu and Zhejiang provinces were quoting POY (150D/48F) at 6,400-6,700 RMB/ton, polyester DTY (150D/48F low-stretch) at 7,750-8,000 RMB/ton, and polyester FDY (150D/96F) at 6,500-6,800 RMB/ton.

Analysis review

Cost Support Weakened

The recent decline in international oil prices had weakened the cost support for polyester filament. Concerns about US tariffs had also exacerbated market panic.

Inventory Pressure Rising

Polyester filament inventories continued to accumulate since the National Day holiday. As of October 9th, the industry's average inventory level reached approximately 22 days, including approximately 13-14 days for POY, approximately 24 days for FDY, and approximately 29 days for DTY. High inventory levels had led factories to strongly encourage shipments, and they were inclined to offer discounts and promotions to alleviate pressure.

Demand remained sluggish

Downstream textile manufacturers were cautiously purchasing, primarily focusing on replenishing inventory to meet immediate needs, with little appetite for large-scale stockpiling. Furthermore, the external trade environment remained uncertain. Although Trump's stance softened somewhat following his tough stance, the high overall tariff rate still posed a challenge to the continued recovery of textile export orders.

Market outlook

Considering factors such as insufficient cost support, high inventory levels, and subdued downstream purchasing appetite, polyester filament prices are expected to remain volatile and weaker in the short term. Prices of some products facing significant inventory pressure may continue to decline slightly.

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