According to the price monitoring of the business agency, the domestic polyester filament market price continued to rebound in December, among which polyester POY rose the most significantly, up 10.67% from the beginning of the month as of December 16, followed by polyester FDY and polyester DTY, with increases of 9.59% and 7.67% respectively.

Good cost boost, polyester filament factory volume and price rise. In terms of production and sales, the market of polyester filament in Jiangsu and Zhejiang provinces was hot in the first ten days of December. The average production and sales of mainstream large factories were 100% – 200%, and the production and sales of some better factories were as high as 300%. With the enthusiasm of the manufacturers to raise prices, the prices have been raised successively, and the focus of negotiation has been rising. The mainstream polyester POY (150D / 48F) in Jiangsu and Zhejiang provinces has been quoted at 5550-5800 yuan / ton, up 500-600 yuan / ton compared with the beginning of the month. In terms of inventory, the overall inventory of polyester market is concentrated in 17-32 days, of which POY inventory is 4-11 days, FDY inventory is around 12-29 days, and DTY inventory is about 19-32 days.

Average price rise and fall of polyester filament Market from December 1 to 16, unit: yuan / ton

Products up and down from December 1, 2020 to December 16, 2020

Polyester DTY (150D / 48F low elasticity) 6912 7442 7.67% – 14.83%

Polyester POY (150D / 48F) 5128 5675 10.67% – 19.42%

Polyester FDY (150D / 96F) 5390 5907 9.59% – 20.07%

In early December, the ministerial meeting of the organization of Petroleum Exporting Countries (OPEC) and non OPEC oil producing countries reached an agreement. From January 2021, Member States voluntarily adjusted the scale of production reduction from 7.7 million barrels per day to 7.2 million barrels per day. The meeting also decided that the compensation period for production reduction will be extended to the end of March 2021. Since then, it is expected to gradually increase oil production and reduce the scale of production reduction. After the announcement, international oil prices continued to rise. At the same time, as many countries have begun to promote vaccination work, the market is more optimistic about the recovery of crude oil demand, and oil producing countries have announced production cuts in recent years. As of December 15, Brent and WTI crude oil futures prices have reached their highest levels since the beginning of March. As of December 15, Brent closed at $50.76/barrel and WTI closed at $47.62/barrel.

At the beginning of December, the price of PTA continued to rise by 37.26% compared with that at the beginning of December. As of December 10, 2020, PTA social inventory was about 3.676 million tons, which was higher than the previous period. At present, PTA operating rate is maintained at a high level near 91%, and the supply pressure is obvious. The recent plant changes include Huabin Petrochemical’s 1.4 million T / a load reduction and shutdown for 3 days on December 7; Zhongtai Petrochemical’s 1.2 million T / a PTA plant was postponed to the end of December; fuhaichuang 4.5 million T / a PTA plant was scheduled to be overhauled for 25 days on December 23; the 1.1 million T / a PTA plant in Zhuhai started to be repaired from December 13 to the end of December; Hainan Yisheng 2 million T / a PTA plant was stable, and the preliminary plan was March 2021 Repair.

In the atmosphere of “buy up not buy down”, weaving enterprises have certain replenishment action. Although the weaving factory was affected by the low temperature, the fabric orders in autumn and winter had a certain recovery, but after the orders of “double 11″ and “double 12″ Shopping Festival were gradually delivered, the follow-up of new orders was weak and the sustainability was poor, and the comprehensive starting rate of Jiangsu and Zhejiang looms was reduced to below 79%. The market as a whole is relatively low, and enterprise funds are relatively tight, and the demand side is still facing greater pressure.

Xia Ting, an analyst at the business agency, believes that crude oil shocks near the 9-month high, and the cost support still exists. However, under the trend of high inventory and difficulty in removing stocks in the future, PTA supply pressure is obvious, so the overall supply and demand remain pessimistic, and PTA market has the risk of weakening. In addition, in December, the terminal weaving industry has seen a gradual decline in the starting load after new year’s day. After the winter order is digested, it will stop in large area during the Spring Festival every year. Therefore, the demand for the subsequent terminal will be low and the purchase of raw materials will be gradually reduced. On the whole, polyester filament market has downward risk, and it still needs to pay attention to cost and demand changes.