descriptions meeting market demand remain the most popular goods in the future

Traditional peak season is approaching in Sep. Reflected by some fabric mills and dyeing plants, marginal improvement of end-user demand has been perceived. But impacted by weak overall demand and excessive capacity on downstream market, orders recover slowly and weakly. Demand is limited when overall market is sluggish and has been diversified. Capacity surplus of homogeneously conventional varieties is supposed to intensify, and descriptions meeting market demand remain the most popular goods in the future.

In view of polyester market, with slightly better downstream orders, run rate and mindset, supply and demand of polyester market is moderate now, and profit and O/R of polyester industry improve. Sound supply/demand fundamental is supposed to sustain for a period before end-Sep, but demand may weaken after the National Day holiday, especially in late-Oct, when domestic and external demand is anticipated to enter tail-out period; therefore, contradiction between polyester and downstream market may escalate again. The Spring Festival holiday is earlier this year (normally in Feb but in late-Jan this year), so downstream players’ running confidence may be affected in Q4 if finished goods inventory does not reduce strongly.