Event description

According to CCFEI data, the price of polyester filament products has steadily increased. The price of POY for mainstream products has reached 8,885 yuan/ton, and the product spread has risen to 1,442 yuan/ton. Since the Spring Festival, it has expanded by 641 yuan/ton and returned to the level of the fourth quarter of last year. In the same period, the inventory of polyester filament yarns began to fall from the post-holiday high. The downstream weaving enterprises' operating rate and finished goods inventory were better than expected. The sales of filament fabrics increased rapidly, and the prices of raw materials have stabilized.

Event review

The price of polyester filament products has risen and the spread has continued to expand. Since the Spring Festival, the price of polyester filament products has steadily increased under the influence of the continued recovery of downstream demand. According to CCFEI data, as of April 4, POY, FDY (150D) and DTY prices were 8,885 yuan / ton, 9,375 yuan / ton and 10,450 yuan / ton, respectively, up 2.72%, 3.59% and 2.20% after the Spring Festival. The prices of PTA and MEG, the main raw materials, were RMB 5,445/ton and RMB 7,590/ton, down 7.56% and 5.01% after the Spring Festival. Benefiting from this, the spread of polyester filament products has expanded and profitability has recovered. At present, the price difference of POY, FDY (150D) and DTY is 1,442 yuan / ton, 1,861 yuan / ton and 2,779 yuan / ton respectively, after the Spring Festival, the expansion of 641 yuan / ton, 718 yuan / ton and 632 yuan / ton.

Product inventories began to decline and downstream demand was better than expected. According to CCFEI data, polyester filament stocks have started to decline. As of the week of March 30, POY, FDY and DTY stocks were 11.5 days, 15 days and 29.5 days respectively, which were 4 days and 2.5 days lower than the post-holiday highs respectively. 2 days. The downstream weaving enterprises started to recover gradually, which is the main reason for the decline in the inventory of polyester filament products. According to Wind data, the operating rate of water jet and air jet looms in sample weaving enterprises in Shengze has risen to about 90%. The operating rate is about 50% higher than that after the holiday. The stock of grey cloth is only 23 days, the lowest level since 2013. At the same time, the volume of filament fabrics in China Textile City gradually increased. On March 30, the transaction volume was 8.82 million meters, an increase of 1.78 million meters from the previous week. It has broken through the trading volume platform area in the fourth quarter of last year.

The price of raw materials has stabilized and stabilized, supporting the price of polyester filament. After the Spring Festival, raw material prices fell sharply after a short-term firm. The price of ethylene glycol fell by more than 17% from a high point, and the price of PTA fell sharply to around RMB 5,450/ton. Recently, as international crude oil prices rose again, the margins of ethylene glycol and PTA stocks improved, ethylene glycol prices bottomed out, and PTA prices stopped falling and stabilized. Considering that there are more companies in April, the supply contraction and the downstream recovery, it is expected that the price of raw materials will support the price of polyester filament.