According to the price monitoring of the business agency, the domestic polyester filament market has declined slightly in the past week. The most obvious decline is the average market price of polyester DTY (150D / 48F low elasticity) of 6732 yuan / ton, down 1.55% on a weekly basis and 26.61% on a year-on-year basis.

Average price rise and fall of polyester filament Market from August 20 to 27, unit: yuan / ton

Products on August 20, 2020 to August 27, 2020

Polyester POY (150D / 48F) 5324 5314 – 0.19% – 31.40%

Polyester FDY (150D / 96F) 5865 5815 – 0.85% – 27.36%

Polyester DTY (150D / 48F low elasticity) 6838 6732 – 1.55% – 26.61%

In recent years, polyester filament factory inventory continued to rise, mainstream large factories once again opened the preferential promotion mode, Jiangsu and Zhejiang area factory quotation reduced by about 100 yuan / ton. It is understood that on August 25, the average production and sales of polyester filament reached 80% – 120%, and the production and sales of some better factories could reach 300%, which can be said to be the best production and sales day since mid August. In terms of inventory, as of August 26, the overall inventory of polyester market was concentrated in 33-41 days, including POY inventory of 11-17 days, FDY inventory of 22-33 days, and DTY inventory of about 30-41 days. However, after a short period of storage, and under the circumstances of stronger raw material shock, some polyester POY factories took back the discount, and today (27) increased 50-100 yuan / ton.

Affected by the tropical storm, the offshore crude oil production in the Gulf of Mexico has decreased by more than 80%, and some refineries have reduced their production. As of August 27, the settlement price of the main contract of WTI crude oil futures in the United States was at $43.37/barrel, while that of Brent crude oil futures was at $45.64/barrel. PTA market price continued to rise slightly. As of August 26, the average market price was 3603 yuan / ton, up 0.31% on a weekly basis and 30.95% lower than the same period last year. In terms of units, 1.5 million tons of Honggang petrochemical, 1.2 million tons of Ningbo Taihua and 650000 tons of Yangzi Petrochemical were warmed up and restarted on August 17, 20 and 21, respectively. 4.5 million tons of fuhaichuang was also put into full load operation on August 20, and PTA start-up load increased to more than 91%. However, with the 700 thousand tons of Shanghai Yadong Petrochemical Company and 1.4 million tons of Huabin Petrochemical Company, the operating rate dropped to below 89%. In terms of inventory, as of the end of July, the domestic PTA inventory was as high as 3.6373 million tons, but dropped to 3.5631 million tons on August 20, boosting the market mentality.

Since August, some trading enterprises of terminal textile have reported that the situation of receiving orders has improved, and the frequency of purchasing orders has increased. With the coming of “gold, silver and ten”, the demand of China’s textile city has increased slightly, and the orders placed are mainly autumn and winter fabrics. Due to the seasonal demand, export orders of some regions have increased. Therefore, it also led to the enthusiasm of manufacturers. The comprehensive starting rate of Jiangsu and Zhejiang looms slightly increased to around 64%, but it was still at a low level compared with the same period last year.

Xia Ting, an analyst at the business agency, believes that the international oil price has been adjusted slightly, PTA supply has declined, and the cost side has formed a favorable support. Although the social inventory has been reduced, it is still under high pressure, which makes PTA rise driven by insufficient and cautious bullish. In addition, terminal demand, from the end of August to September is the peak season of terminal weaving, which is mainly to prepare for the demand orders which burst out in the second half of the year, such as double 11, Christmas and new year’s day, so as to relieve the pressure of high inventory, low profit and less orders. Under the expectation of terminal peak season, the demand side will recover. Therefore, in the short term, the market of polyester filament is relatively warm and the adjustment is given priority to.