NEWS CENTER

In July and August of this year, polyester filament manufacturers generally gained a lot. Due to tight supply, FDY products have a high profit level per ton. DTY and POY products have relatively weak returns. DTY products benefit from the lag in price changes, and their profit level decreases slowly during the period of POY price decline. Although POY began to turn losses into profits in early July, it fell to the edge of profit and loss in mid to late September.

Before July this year, the trend of polyester filament prices was similar to the data of WTI crude oil and PTA internal prices. From July to August this year, due to the G20 summit, POY factories recalculated their daily processing fees and raised prices, which is also the main reason for the high prices of filament in the later stage. The prices of crude oil, PTA, and polyester filament rose in early September, but downstream fabrics and fabrics were difficult to increase in price, resulting in reduced profits and sluggish shipments.

In the past July and mid August, the price trends of various varieties of polyester filament have been basically consistent. Due to the influence of joint pricing factors, even if the POY price briefly weakens, it will quickly rise afterwards. The prices of FDY and DTY products with a certain lag period are basically supported by prices without time to follow the trend, and the prices are relatively stable. After mid September, there was no significant change in raw material prices, and the trading volume of fabric products in China's textile city surged. However, there was no significant increase in filament production and sales, and prices remained in a consolidation and negative decline state for a long time.

The "Golden Nine Silver Ten" is a traditional peak season in the chemical fiber industry, but this year's "Golden Nine" has not seen a significant increase in the market as in previous years. Although market analysts are not pessimistic about the market outlook for October, the flat market still makes people feel weak. This year, after a strong surge in the first half of the year, WTI crude oil and PTA internal prices have remained in a narrow range of fluctuations for a long time, with occasional small fluctuations, which cannot form a "tornado" effect on downstream markets and thus lose their influence on downstream price fluctuations.

Due to the inconvenient transportation during the G20 summit, as well as the parking of a large number of polymerization spinning devices, and the continuous increase in prices of polyester factories, downstream textile enterprises have increased their procurement volume driven by early stocking and the mentality of "buying up rather than falling". However, the poor trend of crude oil and PTA futures prices has to some extent suppressed the purchasing willingness of textile factories, so the market trading volume and polyester factory production and sales ratio in September this year were insufficient compared to the same period last year.

The operating rate of weaving machines in Jiangsu and Zhejiang provinces has remained at a level of 70% to 80% for a long time. However, the product trading volume of China Light Textile City is significantly insufficient compared to the same period last year. Although there was a wave of "retaliatory" increase in prices before the G20 summit, prices remained as low as expected during the summit, and only improved in mid September. It is expected that the future market can still maintain a high level.

In summary, although the polyester filament market improved in late September, the upstream and downstream have not been able to coordinate and advance together, unable to drive the polyester filament market higher. It is expected that downstream textile enterprises will still be in the peak period of shipment in October, and with the completion of inventory digestion in the early stage, the polyester filament market in October will be slightly better than in September. However, it seems that there is still a lack of upward momentum, and the trading pace is expected to remain gentle, with a narrow fluctuation in the trading focus.