Polyester Staple: Trading Is Basically Stagnant And Market Recovery Is Still Unclear.

After the Spring Festival in 2020, public health events had a great impact on all walks of life, especially in the production and circulation industries. Under this influence, the polyester staple fiber industry is also facing the helpless situation that the market is short of trading and the industry is more passive. Recently, although the government has issued many documents and issued relevant policies to support the resumption of production and production, it is facing many objective inconveniences. Whether the market can recover in the short term is still uncertain.

"There is no market price" - factories offer quotations, and there are few transactions in the market.

Since the beginning of this week, many polyester staple factories have begun arranging personnel to deal with work matters, and have quoted quotations from foreign suppliers, but the fact is "there is no market price". The following reasons will be analyzed from three aspects.

1. The downstream businesses of polyester staple have been postponed and their demand is weak. From the perspective of the spinning industry, the average operating rate of Zhou's pure polyester yarn is 6.67%, of which some spinning enterprises in Fujian, Shandong and Jiangsu have started one after another, while the spinning enterprises in Zhejiang, Hebei and Hubei haven't started yet. From the perspective of the chemical fiber weaving industry, the comprehensive start-up rate of the enterprises is only around 7%, and is still in a large area of downtime. The downturn of downstream enterprises directly depressed the demand for polyester staple fibers.

2, the transportation is not smooth, the circulation of goods is difficult. After the holiday, because of the demand for prevention and control of public health incidents, all localities have stepped up the control over the logistics and transportation industry. The measures are mainly to restrict the entry and exit of vehicles and personnel from non territoriality. Since the beginning of this week, although logistics management and control have been relaxed and the transportation has been resumed slightly, the control measures in different regions are different, which also leads to the unsmooth transportation and high cost of long distance transportation. The transportation of polyester staple fiber in China is mainly based on motor transportation, and the poor transportation links will bring inconvenience to the cross regional transaction.

3, prices are higher than market expectations. After the festival, the first thing is that the bulk commodities are down sharply due to public health events. According to statistics, the prices of PTA and ethylene glycol were 4740 yuan / ton and 5110 yuan / ton respectively in January 23rd. In February 13th, PTA and ethylene glycol were closed at 4285 yuan / ton and 4340 yuan / ton respectively, the decrease was 455 yuan / ton (9.6%) and 770 yuan / ton (15.07%) respectively, while the two products were crossed before and after the exchange. The valuation of Yi day polyester staple fiber was 6925 yuan / ton and 6650 yuan / ton respectively, with a decrease of 275 yuan / ton (3.97%).

It can be seen that the price of raw materials is far more than that of polyester staple fiber, and the cash flow of polyester staple fiber has jumped from 60 yuan to about 400 yuan per ton, which has exceeded the industry's expectations. Although the staple factory understands that the current quotation is unreasonable, it has chosen conservative measures before the market price center is clear. Faced with the current high price and many uncertainties, the space and willingness of traders to enter the market are also greatly suppressed.

When will the market recover?

At present, all sectors of the industry focus on public health events. The fundamental reason for the failure of PET staple market is also the result. The development of events has brought the industry an impact. The next trend will also determine the extent of the impact on the industry. But the incident will eventually pass, and the resumption of downstream enterprises and logistics recovery will directly affect the improvement of the polyester staple market. We should continue to pay attention to it.