Replenishment Is Difficult To Maintain. Polyester Staple Is Weak Before Years Ago.

This week, the direct spinning polyester staple factory produced 48% weekly sales, down 51.5% from last week. The overall stock of polyester staple factory is not high, and some enterprises are oversold. Next week, the downstream holiday will soon take place. Centralized replenishment will be completed in the early stage. The production and sale of PET staple fiber market is not good this week. At the close, the stock of mainstream enterprises is in 0-2 days.


Raw material prices are generally good.


Since January, with the continuous rise of international crude oil and the increase of raw material PX, PTA cost side support is strong. The continuous production of polyester production capacity has ensured the thickening of PTA processing profit. Therefore, the price of PTA has been surging in the first quarter of 2019.


However, before the Spring Festival, most of the industry was on holiday, the operation was uncertain, the market was in a small consolidation period, and after the Spring Festival, businesses came back one after another. In terms of ethylene glycol, the market competition was fierce this week. In the first half of the week, ethylene glycol rebounded, but the rebound was short-lived. In the late week, the market was over expected, and the volume of next week's cargo remained at 250 thousand +, which exceeded the expectation of the market for ethylene glycol. It is expected that ethylene glycol weakness will continue to exist.


The Spring Festival draws near, and the downstream starts to slide.


It is the year after new year's day. These two or three weeks are the peak period of the cotton mill's holiday. The Lunar New Year holidays of Enterprises above Designated Size basically maintained for about 10-15 days. The small and medium-sized textile enterprises had a slight holiday earlier than last year, but most of the textile enterprises holidays were unchanged from last year, and most of them chose to leave in the twenty-eight year or the twelfth lunar month. Although the factory started normal operation, after the small factory holidays, the overall market started to decline, and orders gradually reduced.


Production and sales are expected to decline after replenishment years ago.


Recently, the cotton mill has made great efforts to concentrate replenishment on the downstream weaving mills. The order volume has improved significantly compared with the previous stage, but most of them are small and medium sized orders, and small and medium sized cotton mills have seen a small number of goods being in short supply. The inventory digestion speed of large scale and above enterprises is also fast, and the inventory remains at about 10 days. According to a lot of cotton mill reaction, downstream replenishment will continue to the next year or so, large single delivery period after years, of which T32S large yarn is particularly scarce.


The centralized replenishment of downstream has also led to a marked increase in the production and sale of polyester staple fibres in recent years. But next week, next spring festival, the lower reaches will be closed next week, and the production of polyester staple fiber market will be flat.


On the whole, the high price of crude oil has led to a sharp rise in the price of PX, and the cost side has been strong. However, the spot supply pattern has changed little, while the downstream polyester production has declined and the demand is weak. As the downstream polyester has introduced the pre spring maintenance plan, the market atmosphere is emptiness. Meanwhile, the terminal factories are starting to take off next week, so the replenishment is difficult to sustain.