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polyester filament: Supply reduction is not a "long-term solution", and the market outlook is hardly optimistic
On the whole, with the increase in inventories of polyester filaments and the decline in profits in late March, manufacturers have concentrated production reductions, and the supply side has been greatly reduced to ease the current situation of excess supply and demand. Although the terminal demand is still sluggish, the accumulation of stocks has slowed down, which in turn supports the price of polyester filaments. The decline stopped, and the price of polyester filament rose strongly in mid-April with the cost recovery.
From the perspective of the short-term market outlook, the terminal demand is likely to continue the sluggish trend. In the short term, the supply reduction can support the price increase and repair the profit, but with the extension of the cycle, it will inevitably reduce the profits of the downstream weaving factories, which will lead to the decline in the start of looms and increase the demand for polyester filaments. In addition, the large-scale production reduction of polyester filament cannot be maintained for a long time. After the subsequent profit stops, the market supply will gradually increase. If the terminal demand still does not improve significantly, the price and profit of polyester filament will still face a large negative impact. .
