Insufficient cost support in early July, leading to a weak decline in polyester filament prices

According to the Commodity Market Analysis System of Shengyi Society, on July 7th, the polyester filament market continued its promotion mode, and prices showed an overall downward trend. POY (150D/48F), a mainstream polyester filament factory in Jiangsu and Zhejiang, quoted prices between 6750-7050 yuan/ton, DTY (150D/48F low elasticity) between 8000-8400 yuan/ton, and FDY (150D/96F) between 7050-7300 yuan/ton.

Entering July, the terminal textile market entered the traditional off-season of demand, with a reduction in foreign trade orders. The overall production and sales rate of polyester filament was 30% -40%, a decrease of 10% compared to the average production and sales rate at the end of June. At the beginning of July, the inventory of polyester filament increased slightly, and the industry average inventory level was around 24 days, an increase of 18% compared to the end of June. Among them, POY increased significantly, rising 4-5 days compared to the end of June. Under the imbalance of supply and demand, the polyester filament market continues to be weak.
From the supply side, the previous shutdown reduction devices have gradually restarted and heated up. Currently, the average capacity utilization rate of the polyester filament industry has increased to over 90%, and the supply has significantly increased. On the demand side, the terminal demand is sluggish, the purchasing enthusiasm of users is not high, the inventory of conventional fabrics is high, and the production enthusiasm of textile production enterprises is not high, continuing to reduce negative pressure and avoid risks. In addition, the high temperature weather has also affected the normal operation of the downstream elastic textile industry, further suppressing the demand for polyester filament.
Business Society believes that today’s polyester filament market continues to bottom out under the triple pressure of cost collapse, high inventory, and off-season demand, and structural opportunities only exist in high-end segmented varieties. The short-term decline has not stopped, and prices are running weakly.