Polyester mixed despite consolidation of feedstock market – ChinaTexnet.com
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Polyester mixed despite consolidation of feedstock market

2022-11-23 08:23:14 CCFGroup

China PX, PTA and MEG plant operating rates drop recently, and thus the inventory pile-up would come later than expected. With improving fundamentals as well as rosy macroeconomic situation, the prices of feedstock for polyester rebounded slightly in early Nov.

 

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Polyester feedstock markets bottomed out last week, and then began consolidation, however, the expectation on materials available later is weak with inventory pile-up delayed to Dec.

 

As for polyester, the adverse impact from end-use demand continues to be fed through to upstream sector. Polyester market is mixed as product inventory, profits as well as plant operating rates are different. PFY, PET bottle chip and PSF prices are divided, with PET bottle chip stronger than PSF while PFY remaining the weakest.

 

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Several PFY producers in China cut production unexpectedly last week, and therefore the average operating rate of domestic polyester plants saw a turning point. With demand weakening heavily, PFY producers provided bigger discounts to boost sales. However, as feedstock consolidated, PFY producers had to cut production due to exacerbated losses.

 

As for PET bottle chip and PSF, the situation is less worrisome. PET bottle chip turnover volume spiked on Nov 1, with prices at this year’s low, and the price rallied from bottom. PSF fundamentals are little changed. Plants keep high operating rates, the processing spread is good and inventory stays low, while downstream purchases on need only basis and producers maintain stable selling to make profits.

 

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