Views: 0 Author: Site Editor Publish Time: 2019-10-14 Origin: Site
Overall sales of polyester yarn have been stagnated since this year and the sales rate and volume are both less than last year. Affected by volatile PSF, polyester yarn mills turn more difficult to control the inventory of raw material and finished product. Besides, some spinners suffer losses due to stocking up raw material at a large amount and some are not sensitive enough to the market price and destock improperly, leading to quick accumulation of inventory. As time passes, the inventory has depreciated largely, especially in spinners in North China.
As the raw material of polyester yarn, even though PSF performs better than VSF and cotton, the profits of polyester yarn mills are compressed obviously. From the chart below, the cash flow of polyester yarn has not exceeded previous high since early this year. From Apr, it fluctuated fiercely and even moved to negative side in some months. It is rare to see that in recent years.
In Sep, when visiting to Fujian, major producing area of polyester yarn, the pressure on spinners was heard frequently. During this period, spinners kept destocking and many large plants also focused on lowering inventory instead of pursuing profits.