The overall polyester market in China declined in the month of July. The main reason was muted end-user demand. A rebound will require improvement of end-user demand. And this is expected to improve after less liquidity is occupied by inventory.

Prices of some polyester products, like pet bottle chips and fdy, touched lowest level in end-May and early-June. Fabric manufacturing units and beverage plants do not show higher buying interest even when the feedstock market is not profitable. Compared with late May, the current feedstock inventory of end-users is also low but stocks of finished goods are higher than the lowest point in late May. Different plants witness various performances and some plants still possess the capability to have bottom-fishing.

Many downstream players witnessed the worst business in July since the spring festival holiday and though the business is likely to improve in August or September, the improvement is expected to be limited. However, the business from August to September is anticipated to be better than that in June and July. Downstream plants are likely to try their best to lower stocks and run rate in August and September, holding a pessimistic view on demand in the fourth quarter.