Polyester companies increased production curtailment pressed by the devaluation pressure of stocks

The stocks of finished goods in polyester companies were devaluated after downstream plants delayed resumption, and the inventory of PFY has touched historic high, mainly in leading polyester enterprises. Polyester companies increased production curtailment pressed by the devaluation pressure of stocks. The average polyester polymerization rate was estimated at 78% in Jan, and that in Feb was anticipated to be 85% according to the predicament made before the Spring Festival, which was finally revised to below 62%, and that in Mar is expected to be 78-80% now, with pre-holiday estimate at 89%. The polyester production slipped by 1,060kt in Feb, and the decrement in Mar and Q1 was at 500kt and 1,560kt respectively. The growth rate of polyester output is adjusted down to -6.9% in Q1 2020 from the pre-holiday estimate at 6.6%, and that of the whole 2020 is likely to be reevaluated later, which was expected to be near 6% before the Lunar New Year holiday.