Lead: Recently, as the market price of polyester raw material PTA has continued to rise, and the polyester market has been suppressed by weak demand, the market has followed up with a small increase. Therefore, the processing fees of polyester companies have begun to be significantly reduced. At present, polyester products have been plunged into a loss quagmire and market pressure has increased.
In mid-November, China's PTA spot market continued to rise. The international crude oil market remained volatile and provided moderate support for the market. The atmosphere in China's commodity market improved. Coupled with the promotion of funds, the PTA futures market began to continue to rise. As of the 20th, the negotiated price in the East China PTA spot market rose to around 6085 yuan/ton. Transactions and negotiations around 01 liters of water at the main port this week and next week. The market for ethylene glycol, another raw material for polyester, has risen in a narrow range since mid-month. China's macro sentiment has improved, boosting market mentality. The focus of negotiations on the ethylene glycol market has slightly increased. As of the 20th, the ethylene glycol spot market in East China has risen to 4180 yuan/ton.
The cost of polyester raw materials has increased significantly, but the cost has little traction on the polyester market. Due to the drag down of weak demand, polyester companies are more cautious in following up. The growth of the polyester market is limited. Under the pressure of rising raw materials, the cash flow of polyester companies has been continuously compressed. Among them, production losses of polyester bottle slices and polyester filament companies have intensified, and production of polyester chips and polyester staple fibers has also begun to lose slightly. As of now, the profit of polyester chip products is-93 yuan/ton, the profit of polyester bottle chip products is-428 yuan/ton, the profit of polyester filament products is-453 yuan/ton, and the profit of polyester staple fiber products is-78 yuan/ton.
Although the polyester market rose slightly, downstream buying enthusiasm was low. Although the current load on terminal weaving companies remained relatively high, and comprehensive weaving starts rose to around 80% last week, as terminal textile demand entered the off-season of traditional demand, Winter orders are coming to an end, the textile market atmosphere has cooled, and market orders in the later period are temporarily unclear. As the off-season atmosphere gradually deepens, there is still further decline in the start of weaving companies in the later period. Under the expectation of weakening demand, the market mentality is more cautious, and the production and sales of Chinese polyester companies have begun to weaken. Among them, the production and sales of polyester filament companies have remained at around 40 - 60%, the production and sales of polyester staple fiber companies have remained at around 3- 50%, and the production and sales of polyester chip companies are around 5- 60%. As the order volume of polyester companies continues to decline, the inventory pressure of polyester companies will gradually increase in the later period.
At present, the polyester raw material PTA market has begun to pull back at a high level, and the commodity market atmosphere has weakened, suppressing the market mentality. The polyester raw material PTA and ethylene glycol markets are still expected to weaken. In addition, the supply and demand side of the polyester raw material market itself is weak. In the short term, the market will remain weak. Adjustment, lack of cost support, the short-term polyester market will be weakened with costs. In addition, with the arrival of the off-season of terminal demand and the expectation of weakening demand, the polyester market will still face greater pressure in the later period. In the later period, we will pay close attention to changes in the raw material market and demand side.
