SunSirs: Upstream and Downstream are Negative, Price of Polyester Filament in the Chinese Market will be Weaker

It is reported that on November 25, a number of mainstream polyester factories in China reached a consensus to implement a 20% production reduction plan based on the current output. The plan has been implemented in the past two days, and the subsequent production reduction may be increased to 25% depending on market conditions. The current operating rate of the polyester industry is around 83%.

In terms of price, the quotations of mainstream polyester filament factories in Jiangsu and Zhejiang provinces rose steadily on November 26, and individual specifications were raised by RMB 50-100/ton. Among them, polyester POY (150D/48F) is quoted at 7450-7650 yuan/ton, polyester DTY (150D/48F low elasticity) is quoted at 8900-9300 yuan/ton, and polyester FDY (150D/96F) is quoted at 7650-7850 yuan/ton. 

Crude oil futures fell and cost support weakened. On November 26, the domestic PTA market dropped significantly. The average spot market price was 4777 yuan/ton, down 2.62% from the previous day and up 43.02% year-on-year. The restart and overhaul of PTA devices coexist, and the current operating rate of the PTA industry is around 82%.

Downstream weaving companies are mainly cautious in purchasing raw materials, and the overall market trading atmosphere is light, and demand is not well followed. Orders in the domestic market continued to decline, new orders for foreign trade were not issued smoothly, factory shipments were slow, and the wait-and-see sentiment was strong.

Crude oil's center of gravity has shifted downwards, PTA spot is still surplus, and demand performance is average. From the perspective of current polyester filament fundamentals, the upstream and downstream are negative. It is expected that the short-term polyester filament price will be weak.

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