A glance at polyester industry chain operation

How is the current situation of the polyester industry chain? Comparing the operating rate and inventory of various varieties with previous years, what overall level are we at ?

Operating rate

The operating rate of PET bottle-grade chips is relatively low, while other varieties have mostly returned to high levels, especially PX and polyester filament yarn.

Inventory

There is significant pressure on product inventory, particularly with POY and DTY reaching high levels since 2022; inventory in the staple fiber is notably rising.

The high inventory in end-2022 was mainly due to the impact of the pandemic, while this year's inventory pressure comes from the high operating rate at the end of 2023, which resulted from the high expectations for the demand and the actual weak demand now.

However, there is an expectation of gradual growth in demand in 2024, but caution is needed regarding the market's susceptibility to high inventory.