After the Spring Festival holiday, polyester filament had a “good start” as expected, but the large increase was somewhat unexpected.
Due to the large increase in crude oil and the suspension of polyester market transactions during the holiday, the cost push was released intensively on the first day after the holiday. In a single day, polyester filament POY, FDY and DTY was raised by 350 yuan/ton, 250 yuan/ton, and 275 yuan/ton respectively. The relatively large price increase also led to “speculative” purchases by downstream weaving and texturing factories, and polyester filament production and sales were booming.
Subsequently, crude oil rebounded sharply again after a moderate decline. Polyester filament rose by nearly 600 yuan/ton on Monday and Tuesday this week, as of February 23 The price of polyester filament POY is around 7,400 yuan/ton, an increase of 14.7% compared with before the holiday, which is the largest single-week price increase after the Spring Festival in previous years.
The initial price increase had a positive effect on the production and sales of polyester factories. However, as the price increase expanded, caution and resistance to “side effects” demand began to heat up.
Polyester filament prices from January to February 2021 and Production and sales trend chart
Looking at the market outlook
In short, the supply and demand of polyester and polyester filament will rebound in the future. The cost-end crude oil and polyester raw materials are more likely to rise. The price of polyester filament will be easy in March. The main thing is that it is difficult to rise and fall. Throughout the year, due to the weakness of the U.S. dollar and other currencies, the loose credit environment, the normal recovery of terminals, and global inflation, commodities may usher in a boom cycle. It is expected that polyester filament prices will return to the levels in the first half of 2019 in 2021.
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