Reevaluation of the polyester polymerization rate

With the approaching of New Year’s Day holiday and Spring Festival holiday, holiday mood turned gradually stronger. Some warp knitting plants in Changshu reflected that the operating rate has declined to 30%.

Feedstock market climbed up strongly in Dec, adding heat to polyester market. Spot and futures MEG basis surged to 1,000yuan/mt and gradually declined in recent days. Price of PTA also firmed up supported by strong cost side. Some traders were impacted by this round of big volatility and cash flow was squeezed in some plants.

This round of fluctuation actually played positive role on polyester market, such as the switch of downturn expectation, falling polyester stocks and the placement of orders in some downstream market. Market players showed improving mindset. The cooperation of macro environment also exerted some effect.