Introduction: From late April to the present, after polyester industrial yarn factories concentrated their shipments, the market price center of gravity has risen slightly, which also shows that the market bottom has passed and the industry’s supply and demand side is gradually recovering. However, the uncertainty of overseas epidemics and downstream foreign trade orders have not seen a significant improvement, nor have domestic sales orders. As the weather gets hotter and hotter, the industry gradually enters the off-season. In addition, with the expected release of new production capacity in the next 6-8 months, polyester It is difficult for the industrial yarn market to rise significantly.
In early May, due to the strong rise in international oil prices, which supported the cost-end operation of polyester, polyester industrial yarn cash The flow quickly shrank to near the horizontal line. Due to cost suppression and some factory orders, orders for mid-May or even June have basically been received at this time. The market price rose slightly. Until today, with the fluctuation of polyester chips, polyester chips fluctuated up and down. The mainstream transactions in the industrial yarn market basically maintained stable operation.
According to statistics from Longzhong Information, the mainstream transaction price of polyester industrial yarn 1000D/192F in the market is between 7200-7600 yuan/ton, ex-factory in cash.
Since April, prices have remained stable, mainly shipments. Although the factory has received more orders in April, downstream follow-up is obviously insufficient, because there will be three-dimensional, Hengli and Baihong have released a total of 600,000 tons/year of new production capacity. Some downstream companies expressed their hope that after the new production capacity is released from June to August, each company will purchase at a low price when they seize the market.
Looking at the market outlook, oil may continue to promote production cuts in OPEC+, and many European and American countries continue to relax epidemic controls. , but the demand recovery brought by news of overseas resumption of work has been slower than expected, and the market’s concerns about the tightening of remaining inventory capacity still exist. These factors will limit the speed of price recovery, and the current PTA social inventory is at a historically high level. Industry processing fees are at a relatively high level of 700-800 yuan/ton, and oversupply is still expected in the future. In the short term, when the demand side trend is average, changes in the cost side will also be a key factor affecting the market trend. Ethylene glycol is facing the impact of low supply and demand caused by low construction starts and high port inventories. In terms of the polyester industrial yarn market, it is currently basically maintaining a volatile operation. The mainstream transaction highs have slightly increased with the support of the polyester raw material end, but the lows still exist. On the demand side, although infrastructure-related industries such as geogrid materials and lifting belts have relatively strong demand due to the country’s economic boost, industries with high export dependence such as cord fabrics still face greater shipment pressure. The overall orders on the demand side are still relatively limited, so it is expected that this round of market may come to an end temporarily, and polyester industrial yarn will maintain stable operation in the short term. However, after the release of new production capacity at the end of the second quarter and the third quarter, a new round of price war will restart. , low market prices are inevitable.
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