Polyester yarn price has hit the lowest since 2017. Even though most spinners have selling at around cost line, the sales cannot move smoothly. Some spinners suffered huge losses as they stocked up PSF during the decline of PSF or accumulated finished products, and some can run normally only by production cut and cautious operation.
Due to this continuous fall of polyester feedstock, PSF price stays in downtrend and polyester yarn is also dragged down. Most spinners start to sell at around the cost line, but even so, the sales cannot move smoothly. Some spinners suffered huge losses as they stocked up PSF during the decline of PSF or accumulated finished products, and some can run normally only by production cut and cautious operation.
The sustained depression of PSF makes a dent in the vitality of the market and the wait-and-see attitude adopted by downstream also hamper the sales of polyester yarn. In a long period of time, small and medium-sized spinners were forced to cut production and operating rate in Zhejiang, Jiangsu, and Hebei declined. In the meantime, end-user fabric plants ran at a low rate. Generally, spinners are not active in production cut considering production cost and labor sustainability, but this year, a large amount of small and medium-sized plants reduce production and some small plants even suspend production, which also indicates the sluggish market at present.
Looking the overall trend this year, lacking obvious improvement of polyester feedstock and rebound of end-user demand results in current depression of polyester yarn market which is also reflected in the slackness in peak season. As the Spring Festival will come earlier this year, most spinners are expected to take holidays much earlier. With so many unfavorable factors, the market will be difficult to improve. If end-user demand does not recover obviously, this situation may sustain until next year and overall operating environment will continue to be burdened.