Price trend

According to the commodity market analysis system of SunSirs, under the boost of cost benefits, some product specifications of mainstream polyester filament factories in Jiangsu and Zhejiang had steadily increased. Among them, POY (150D/48F) was priced at 7,400-7,750 RMB/ton, polyester DTY (150D/48F low elasticity) was priced at 8,800-9,100 RMB/ton, and polyester FDY (150D/96F) was priced at 8,200-8,450 RMB/ton.

Analysis review

Recently, the PTA industry for raw materials had seen a decrease in demand and an increase in maintenance expectations, leading to a rebound in prices. As of January 18th, the market price in East China was 5,824 RMB/ton, an increase of 1.36% compared to January 11th. The PTA industry's operating rate remains around 84%, but the load of the 4.5 million ton PTA plant at FuhaiChuang in southern China had been adjusted from 80% to around 60%. The other set of Baihong’s 2.5 million ton PTA plant was planned to be shut down for about 4 days in late January. At the same time, the 3.3 million ton PTA unit of Yisheng New Materials Line 2 was scheduled to undergo maintenance for one month by the end of this month. Therefore, it had a certain positive impact on the PTA supply side.

However, as the Spring Festival approaching, although terminal demand had significantly weakened, there had not yet been a large-scale shutdown. As of January 18th, the comprehensive production of weaving machines in Jiangsu and Zhejiang was around 70%, and there had been no significant decline for the time being. Faced with the strengthening of raw materials, downstream weaving enterprises had a strong wait-and-see attitude and generally have a low intention to inquire. They mainly focused on digesting pre stocking and waiting for promotions,

Market outlook

Analysts from SunSirs believe that recently, polyester filament had been driven by cost, and a series of maintenance plans for PTA equipment recently helped improve the PTA supply and demand structure. The PTA spot market continued to rise slightly. In addition, although there were fluctuations in the crude oil market, there was still support from the cost side. In terms of demand, considering the Spring Festival, most downstream factories will be shut down for about a month and a half, and it is expected that demand will gradually weaken. Therefore, overall, the price of polyester filament will continue to decline after a slight upward trend.

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