Polyester filament losses widen, raising concerns about further production cuts
Over the weekend, some large-scale polyester filament factories increased promotional discounts, with discounts up to 800 yuan/ton. For example, the transaction price of POY150D/48F dropped to 7,250 yuan/ton, which is close to the lowest price of 7,200 yuan/ton last year. Calculated based on the price last Friday, POY150D has averaged a loss of nearly 200 yuan/ton. Coupled with increased weekend discounts, the loss has expanded to nearly 300 yuan/ton, reaching the lowest point of profit this year.?
At the same time, since May, downstream purchases have mainly been based on demand, resulting in a decrease in overall raw material inventory. As of last Thursday, most downstream stockings were for the second half of the month, indicating a new round of purchasing. Stimulated by promotions, polyester filament sales in Jiangsu and Zhejiang regions increased partially over the weekend, with the average two-day increase expected to be around 130-140%. The average production and sales rates of several factories in Jiangsu and Zhejiang are 230%, 0%, 55%, 0%, 0%, 0%, 45%, 40%, 70%, 85%, 30%, 40%, 40%, 40% , 50%, 50%, 20%, 200% and 70%.
Since March, polyester filament companies have continued to promote sales. The price has hit the lowest point in the year many times, and profitability has declined. The current filament price has fallen to the lowest point in the year, especially for POY.
Since the May Day holiday, the orders received by downstream textile mills have generally weakened, and the operating rate has declined seasonally. In the future, we will pay attention to the implementation of the 10% production reduction plan of leading filament yarn companies and whether some small and medium-sized enterprises will follow suit.
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China's polyester fiber accounts for more than 70% of the global market share, and its production capacity is still growing rapidly. It was once worried that the rapid and continuous expansion would lead to oversupply that would be difficult to digest. However, in fact, the potential demand from downstream fabric factories is still huge. With the integration of the polyester industry chain , it is increasingly important to pay more attention to upstream and downstream linkage.
The Zhejiang and Jiangsu fabric factory operation report mainly focuses on the downstream Zhejiang and Jiangsu weaving and knitting bases. In China, more than 70% of polyester filament production is consumed by weaving and knitting mills in Zhejiang and Jiangsu. This operational report aims to provide a clear understanding of the polyester filament downstream market. Monitoring trends, profit conditions, operating rates, new orders, inventory levels and raw material preparation can yield important insights and opportunities.
CCFGroup has released cloth factory start-up reports in Zhejiang and Jiangsu for three consecutive years. After long-term experience accumulation and continuous improvement, it has established a relatively complete indicator system. Before each release, we will go deep into the downstream factories to understand the actual operation status of the factories. CCFGroup tries its best to quantify the indicators in the report to ensure the trackability of the indicators and to facilitate the grasp of mid- to long-term trends.
Operation report of fabric mills in Zhejiang and Jiangsu includes grey fabric price index, grey fabric spot profit index, O/R index of fabric mills , new order index of fabric mills, stocks index of grey fabric and feedstock inventory index of downstream sectors etc.?Sample report for operation report of fabric mills in Zhejiang and Jiangsu
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