The operating rate of Chinese polyester yarn mills in July to September was much lower than that in the same period last year. Polyester yarn prices moved in line with raw material prices. They have hit the lowest since 2017. Most spinners have started to sell at around cost line, but even so sales are not moving smoothly. Some spinners suffered huge losses as they stocked up on polyester staple fiber or accumulated finished products, and some can run normally only by production cuts and cautious operations. Small and medium-sized spinners have been forced to cut production. In the meantime, end-user fabric plants are running at a low rate.
With so many unfavorable factors, the market will find it difficult to improve. If end-user demand does not recover, this situation may last until next year and the overall operational environment will continue to be burdened. The sustained depression in the polyester staple fiber market has made a dent in the vitality of the market and the wait-and-see attitude adopted by downstream players also hamper the sales of polyester yarn. As raw materials for cotton textile, cotton, viscose staple fiber and polyester staple fiber all face huge pressure in 2019. The sentiment of these three markets have cooled down and finished products are also affected negatively.