Views:0 Author:Site Editor Publish Time: 2019-06-18 Origin:Site
Price change of polyester products diversified too. Price of PET bottle chip, PET fiber chip, PSF, DTY and polyester spun yarn weakened, and only that of POY and FDY climbed up. Alleviated pressure on polyester market did not reflect well on price.
Products closer to end-user market were weaker, such as DTY, polyester spun yarn and grey fabric. Increasing feedstock prepared in grey fabric plants resulted into the raise of run rate, but sales failed to improve; thus, stocks accumulation of grey fabric accelerated, and later momentum is restricted.
If finished goods inventory of end-users continues mounting, a new round of production curtailment and suspension is expected to appear, especially after the feedstock prepared being used up, which may force polyester plants to scarify cash flow and raise the pressure of polyester plants in terms of inventory and operating rate. Intensified Sino-US trade conflict is anticipated to be bearish for demand in short run.
Therefore, short-term supply and demand fundamental is bullish for the whole industrial chain, pushing up price, but the increment range is likely to be constrained by medium-term demand expectation. Market players may present intensified bearish mindset close to the new capacity startup time of PX, PTA and PFY when demand does not improve fundamentally.