Transactions continue to dip, polyester industrial yarn urgently needs good support

Introduction: After a month of continuous strength, the market price of polyester industrial yarn entered a rapid downward channel in August. Although the cost side has remained we…

Introduction: After a month of continuous strength, the market price of polyester industrial yarn entered a rapid downward channel in August. Although the cost side has remained weak recently, the price decline is much greater than that of raw materials. The strong market profits of factories have been rapidly squeezed, and the polyester industrial yarn market has entered a period of melee.

Polyester industrial yarn and its raw materials price chart

Longzhong Information statistics show that as of August 16, the mainstream market price of ordinary high-strength 1000D polyester industrial yarn was 9,800 yuan/ton, a month-on-month decrease of 1,700 yuan/ton, or 14.8%, and a year-on-year increase of 1,700 yuan/ton, or 21.0%. The main raw material polymerization cost and glossy chip price fell between 2.5% and 5.8%, which is more limited than the overall decline in polyester industrial yarn.

Recent polyester industrial yarn and raw material price comparison table

Source: Longzhong Information

Looking back at the early stage, since polyester industrial yarn factories started to raise prices at the end of June, polyester raw materials have entered a downward channel due to the correction of international crude oil, debt reduction, interest rate hikes and other macro-negative factors. Entering August, the macro-negative factors have been digested and the market is new. The direction of the guidance is not yet clear, and the cost end of polyester and glossy chips have entered a stalemate and are weak. Cost-side support weakened. On the superimposed demand side, in the week of August 7, some areas in Zhejiang and Jiangsu began to limit power and production, adding a new sense of depression to the textile end market, which was originally in the off-season of the industry, and the market atmosphere was once again dragged down.

After the factory’s price reached a high level at the end of June, the shipment situation in July was generally average. The mainstream price in the market remained between 11,000-12,150 yuan/ton. The bottom price was mainly shipped by traders and small enterprises. As the market knows, the polyester industry The trading mode of the yarn industry is mainly based on direct sales from factories to factories. Traders account for a very small proportion of sales, and most traders are mainly for self-use and export depending on the situation. There are many unprofitable downstream sources of high-priced raw materials. Therefore, polyester industrial yarn in July There are only some rigid users in the market who are purchasing small amounts of goods. Although the industry operating rate remains at 54%-55%, factory inventories are still accumulating.

To sum up, the recent rapid decline of the polyester industrial yarn market is the result of the accumulation of multiple negative factors in the market’s macro and fundamental aspects. The current market quotations are generally chaotic, and transactions continue to bottom out. The market is in urgent need of positive support. When will the decline stop? We need to wait for the market’s new direction guidance. For specific trends, we need to pay further attention to the processing range of polyester industrial yarn and the changes in the inventory and start-up of mainstream enterprises.

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Author: clsrich