Q4 polyester industrial yarn market still expected to be in difficulty

Recently, listed companies successively released the third quarter report of 2022. The representative enterprises of polyester industrial yarn industry are Unifull, Hailide and Sanwei.  Based on the third-quarter reports of the three companies, the net profit was lower than that of last year in the third quarter of 2022. Unifull’s loss increased by 66.20%, Haili's net profit decreased by 55.42%, and Sanwei’s net profit reduced by 1.02%. Compared with the first three quarters, Unifull's loss doubled, Haili's net profit declined by 36.97%, while Sanwei’s net profit increased slightly by 2.26%. Therefore, generally speaking, the benefit of the PIY industry was not as good as that of last year both in Q3 and in Q1-Q3.

Prices of PIY moderately increased after the National Day holiday stimulated by advancing cost, while trading was mainly based on the price before holiday. Ordinary high-tenacity 1000D was around 9,000-9,200yuan/mt. Trading was scant after price rose. After cost side fell back in mid-Oct, price of PIY also decreased and was stable in the second half of Oct. Some PIY companies tentatively raised offers in end-Oct while actual trading price changed little. Therefore, price of PIY was in range bound in Oct. Trading price of ordinary high-tenacity 1000D was mainly near 9,000-9,500yuan/mt, while the losses of PIY plants narrowed over Sep.

PIY plants faced shrinking losses while were still under deficit in Oct. The operating rate of PIY plants has apparently ascended compared with Q3. Supply glut is expected to continue dominating PIY market in Nov and Dec, and PIY producers may keep in plight in Q4.