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Since the beginning of this year, PTA and polyester filaments have been worried about external troubles, external trade friction, textile and garment industry transfer, resulting in shrinking export orders, corporate export pressures, and slowing domestic economic growth to suppress residents' purchasing power, combined with polyester filament production capacity in recent years. With concentrated release, the growth rate of demand tends to be slow, the contradiction between supply and demand is prominent, and the profit level is continuously compressed. In this case, how will PTA and polyester filaments work in the future?
PTA medium and long-term weak operation
Due to the new capacity of PTA, the short-term equipment maintenance is difficult to change the supply pressure caused by long-term capacity. The addition of new capacity will trigger a shift in supply and demand, and the integration of refining and chemicals will make the cost of processing enterprises move down, and it is difficult to return to the level of high processing.
Recently, the PTA futures price has been down all the way, falling from the September high of 5,400 yuan / ton over 500 yuan / ton. The Sino-US trade friction is moderated, and the repair and repair of the equipment is poor, which may bring short-term support to the PTA price. However, under the integration of refining and chemical production and new capacity, the PTA price will continue to be under pressure in the medium and long term.
Fast market for polyester market
This year's PTA downstream market peak season is relatively short, showing a peak season. At the beginning of October, the prices of polyester products began to weaken, and some polyester filaments suffered losses. At the same time, the inventory level rebounded from different levels in early September, and the polyester market quickly accumulated.
From the perspective of the terminal market, due to the global economic downturn and trade friction, the demand for textile and apparel is sluggish. This year, the operating rate of looms in Jiangsu and Zhejiang provinces is lower than that of previous years. The peak season has rebounded slightly and then fell back again, and has fallen back to August. As the late off-season comes, the terminal will continue to be under pressure and conduct upstream. In addition, Sino-US trade frictions are complex and have a lasting impact on the textile industry.
The promotion is strong, and the production and sales are difficult to increase.
Winter fabric purchases are nearing completion, and spring orders have not yet started, and market demand is in a phase of ignorance. Even if the spring orders start, the downstream enterprises are tightly funded, the purchases are still just needed, and the production and sales are difficult to increase. Therefore, the process of de-stocking of polyester filament yarn enterprises is slow, the pressure on enterprise stocks is prominent, and the promotion is also helpless.
At present, some of the bombing plants have been running down, and some polyester filament enterprises have also reduced their risks and hedges. After mid-November, it is expected that the team will gradually grow stronger, and at the end of the year, enterprises will increase their sales and expect cash flow to continue. The narrowing, the loss of this year is not only the amount, the profit is also decreasing.
In summary, the recent PTA price has fallen sharply, the processing gap has fallen into the low range, and the Sino-US economic and trade consultations have progressed. The PTA equipment maintenance continues, which may bring certain support to the PTA price in the short term. However, as PTA's new capacity is approaching, coupled with weak downstream demand, the pressure on the library is highlighted.
In the first half of the year, thanks to the support of the cost end, the polyester filament market is still in a good trend. In the second half of the year, with the new equipment put into operation and the raw material prices continue to be dragged down, the polyester filament market is neglected, the inventory continues to accumulate, and the possibility of rapid rebound is possible. Not very sexual.
Source: Textile and Apparel News
Xuzhou Heping Chemical Fiber Co., Ltd., located in Xuzhou Huaihai Economic Development Zone, provides customers with high-quality and high-quality polypropylene high-strength yarns with the production technology, strict quality control system and high-quality after-sales service. The product performance is good and the price is right, and can support the customized sample. The main products of peaceful production are: polypropylene industrial silk, split film industrial yarn, high-strength polypropylene network wire, polypropylene high-strength wire, polypropylene high-strength wire and other polypropylene products.