After mid-September, polyester plants in Jiangsu and Zhejiang provinces successively issued multiple production reduction orders, and some polyester yarn factories continued to join the production reduction team. According to Xiaobian, as of mid-September, the amount of polyester in the past three weeks has accumulated to about 5.39 million tons, which is equivalent to a 10.4 percentage point drop in polyester load. The effective operating rate of polyester this week has dropped to 88.1%.

The price cuts have been up to two weeks, but the promotion has not been effective. Is it possible to reduce production?

In the recent PTA period, the market experienced a waterfall-type decline. The spot price fell nearly 1,000 yuan on two days. As the PTA price continued to fall, the price of polyester filament yarn also appeared loose, from the previous preferential shipment to a large price drop. The PTA fell to accelerate the decline of polyester filament yarn. In the middle of the year, the polyester factory in Jiangsu and Zhejiang generally lowered the ex-factory price of polyester filament by 500-800 yuan/ton. According to statistics, as of the 19th, polyester filament has ushered in a price cut for about 10 consecutive days. The average price of POY150D has dropped from RMB 1,400/ton on September 10 to RMB 1,700/ton, down by RMB 700/ton. It reached 5.65%.

However, the price of polyester filaments on the 20th still has not stopped falling. In the case of a slight increase in the price of polyester raw materials, most polyester factories still have a reduction of 100-200 yuan/ton.

Tongxiang direction: Tongkun polyester silk POY fell 50, the deal was negotiated; Huzhou Huaxiang FDY fell 200, DTY fell 100

Jiangsu direction: Jiangsu Shenghong polyester silk reported stability, preferential negotiations; Taicang Huaru Polyester POY fell 100, deal with talks; Wujiang Xinmin FDY fell 50, preferential negotiations; Zhangjiagang Xinxin FDY part fell 50-400; Wuxi Huaya FDY reported stability The highest amount of transactions can be guaranteed for one thousand

Shaoxing direction: Shaoxing Tiansheng FDY yesterday adjusted more stable today, preferential negotiations; Shaoxing Jiabao FDY fell 100-200, preferential negotiations

Xiaoshan direction: Xiaoshan Rongsheng fell 100-300; Zhejiang Xinghui DTY fell 100, preferential negotiations; Southeast Polyester POY reported stability, visibility discount 100-300; Xiaoshan Huaxin cation POY drop 100

Side effects after the collapse of polyester filaments: reduced stocking, turn to wait and see

According to the tradition, September-October is the peak season for consumption, and the prices of various products are mostly rising, but this year's peak season is not prosperous, and prices have fallen. Downstream demand has not been prosperous due to various environmental governance, Sino-US trade wars, etc. The production and sales pressure of polyester factories has increased, and the inventory is high, but there is no need to reduce prices.

On the other hand, in the downstream market, the weaving market, which is still under high cost, faces the plunging market, such as the stunned bird, becoming more cautious, still keeping an eye on the raw materials market. At present, Jiangsu and Zhejiang weaving factories have not followed up on purchases. After the price reduction of polyester filaments, the stocks have been reduced and turned to wait and see.

Can the weaving end demand support? Before the raw materials have not stabilized, the downstream procurement cycle is estimated to wait a second!

The surge in raw materials in the early period was far greater than expected for the downstream, and the price of the single season was difficult after the skyrocketing.

At present, most of the raw materials produced by the weaving manufacturers are purchased at high prices. Even if some weaving manufacturers have the foresight to buy large quantities of raw materials before the raw materials are raised, but after two months of consumption, there are few low-priced raw materials in the early stage. In order to ensure normal startup, manufacturers have to purchase raw materials at high prices. In production, the phenomenon of plummeting of raw materials is equivalent to the direct depreciation of the fabric produced in the machine. "The cost loss caused by the rise of raw materials in the early stage is too late for us to pass on to the downstream. If the raw materials plummet, there is no room for price increases. Now, the fabrics produced at high cost can only be sold at a reduced price." The author said.

Not only is Xia Zong, but many cloth bosses are worried about the trend of raw material prices in the future. “The raw materials in the previous period rose by 2000-3000, and the cost of the four-sided materials rose by 0.80-0.90 yuan/meter, but our price rose by 0.40 yuan. / m, this is also the result of communicating with customers for a long time, but if the raw materials fall, our customers will immediately press the price, the next list is even worse." Wu Jiangyi textile enterprise boss Shen Zong also said.

At the same time, weavers have reported that the downstream procurement cycle is expected to wait a second before the raw materials have shown signs of stabilization.

It is understood that since August this year, high temperature weather throughout the country, coupled with frequent increases in raw materials, processing costs of weaving mills have been compressed, the market start-up level has declined, and the phenomenon of weaving enterprises in Haining and Changxing areas is more obvious. From the weaving end, after entering September, the market began to show signs of weakness, especially in Shengze and other places, the entire downstream weaving market has not been like the situation in July and August. In the market trading atmosphere weakened, fabric prices are difficult to rise, and raw material costs continue to be high, the production enthusiasm of weaving manufacturers has dropped significantly. According to statistics, since the last weekend, the startup situation in Jiangsu and Zhejiang has undergone subtle changes.

On the other hand, the terminal garment factory has also been affected by the high price, and the phenomenon of placing orders has been suspended. The weakening of the demand from the bottom up has led to a decrease in the demand for procurement of upstream raw materials.

According to a recent survey conducted by an institution, the industry's mentality toward the weaving market trend in late September has changed. The PTA trend is weakening, and there may be a risk of continued decline in the latter half of the year. In addition, the downstream demand is still not prosperous, and the Sino-US trade war is intensifying. Under the double stimulation of the upstream and downstream, the weaving of the polyester filament market will be aggravated.（Polypropylene Staple Fiber）

All in all, Xiao Bian believes that the market is affected by “buy up and not buy down” and the recent market continues to be sluggish. The price reduction promotion is not effective, and there is still a downside risk in the polyester market in the next decade. At the same time, some insiders analyzed that according to the practice in previous years, is this large-scale production cut to increase the price? The market is unpredictable, no matter whether it is true or not, be careful!（Polypropylene Staple Fiber）

Hai'an County Qinfeng Chemical Fiber Co., Ltd. relies on first-class professional technical strength, front-end quality inspection system and perfect quality inspection system to rank among the high-quality enterprise queues in the industry, specializing in the production of Polypropylene Staple Fiber, sincerely look forward to your call us!

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