Towards the end of the year, polyester filament yarns unexpectedly started a wave of crazy gains. Since December, the European and American countries have successively approved vaccines and started large-scale vaccination. The market is mainly optimistic. At the same time, US crude oil inventories have fallen, and the Fed has continued to loose monetary policy. Oil prices are rising.

Under the influence of rising crude oil and the number of PTA futures warehouse receipts and effective forecasts hitting new highs during the year, PTA futures stocks continued to run strongly under the continued accumulation of stocks, forming a strong support for the cost side of polyester filaments. At the same time, polyester filaments have continued to expand their losses. As a result, the polyester factory was in an unusually high mood to follow the rise.

The rise in crude oil and the strength of polyester raw materials PTA and ethylene glycol from the fundamentals of the futures are the core driving force for the substantial price increase of polyester filament. In addition, the polyester factories continue to digest the low inventory during the process and also contribute to the price increase. Supported by the continuity of polyester filament yarns, polyester filaments have entered a cycle of loss-rising costs-stop loss and price increases-heavy production and sales-destocking-tight specifications and supply-preferential reduction.

In previous years, after entering December, the demand for polyester filament yarns will enter the off-season stage. With the increase in prices, the production and sales of polyester filaments ushered in a sharp recovery. Since the beginning of December, the average production and sales of polyester filaments have been 80%, an increase of 10% from the same period last month. Percentage points.

　　 At the same time, while the cost-side benefits continue to be released, the maintenance of polyester equipment is gradually increasing. According to statistics, in mid-December, the polyester plant reduced production or increased overhaul equipment, mainly because of power cuts in some areas and equipment transformation in some polyester plants.

In December 2020, news about energy conservation, emission reduction, and power curtailment policies appeared in many places, including Zhejiang....According to verification, the texturing machine consumes a lot of electricity, so the texturing plant is greatly affected by the policy. Most texturing companies in this area shut down some texturing machines. Recently, due to the high profit level of the texturing machine, the operating load of the texturing machines is more than 95%. Affected by this policy, the local texturing machine start-up load is expected Dropped to around 80%.

　　 It is estimated that by the end of the month, the polyester production reduction and overhaul capacity will be around 1.68 million tons, which will affect the polyester operating rate around 2.5%. It is estimated that by the end of January, the polyester production reduction and maintenance capacity will reach around 3.05 million tons, and the polyester operating rate may drop to 83-84% by then.

　　Because the mainstream polyester factories have not yet clarified whether they will follow-up equipment reduction and maintenance plans, there is still a large room for changes in the subsequent polyester plant equipment maintenance scale, which will also affect the change of market mentality.

　　The crude oil market price is expected to continue to rise in the future, and the overall domestic macro market performance is relatively warm. In addition, the long-term funds of raw material PTA futures are still strong, and the follow-up may still be strong and volatile. The cost-side driving effect is expected to be strong.

　　 At the same time, in the first half of December, the polyester plant was in the destocking cycle, and the subsequent equipment reduction and maintenance plans were implemented. From December to the first half of January, the overall supply pressure on the polyester market eased. After the polyester market price continued to rise in December, cost pressures flooded downstream.

　　 Although the end market is expected to improve in 2021, the downstream demand is currently in a weakening stage. Whether cost pressure can continue to be transmitted smoothly will affect the subsequent trend of the polyester market.

Xielong Group High-tech Chemical Fiber Co., Ltd. is a professional supplier of material spinning, weaving and dyeing of shoe material textile. The main products are nylon thermal fuse, polyester thermal fuse, TPU special filament, TPU thermal mesh, PES Hot melt adhesive omentum, PA hot-melt omentum, etc.

The launch of Xielong Group's new materials will provide environmentally friendly, safe, and better-performing products for the development of shoe materials, clothing, luggage, furniture, and decoration industries.

If you want to know more product information, please contact: Ms. Jiang 18861266688  Manager Chen 13960259999  Website: http://www.xlfiber.com