News

2022

Polyester filament: short-term "two highs, two lows" deadlock is difficult to break

Now it is said that polyester filament currently has high costs, high inventory, low demand, and low profit. So what is the reason for this? How to predict the future market trend?

Since February, due to geopolitical influences such as severe cold weather and the Russia-Ukraine war, international crude oil prices have risen sharply, supporting the polyester raw material end, and the price of polyester filament has increased under high costs. As of March 9, the polymerization cost was 7495 yuan/ton, up 15.68% compared with before the Spring Festival, while the polyester filament POY150D/48F was at 8350 yuan/ton, up 7.05% compared with before the Spring Festival.

In terms of supply, due to production restrictions last year, most factories underwent overhauls, and factories are worried about the loss of workers. During the Spring Festival, the polyester load was generally high, and supply continued to increase after the festival. In the same period last year, it rose by 19.3%. However, the return of downstream demand-side workers and new orders were limited, and the recovery was slow. The downstream was more resistant to high-priced raw materials, and purchasing enthusiasm was not good. The pressure on factory inventory increased, the market was weak, and profits were rapidly squeezed.

At present, under the influence of geopolitics, the trend of international oil prices is relatively uncertain, but from the perspective of raw materials, the cost side in March remained high and fluctuated in the short term and was relatively firm. From the perspective of supply and demand of polyester filament itself, although high cost and low profit support prices, high inventory and low demand still restrain its upward space. Therefore, it is expected that the price of polyester filament will fluctuate in the short term and maintain low profit operation.