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The price of polyester chips fell continuously after the opening of the year. At the end of March this year, the market price of polyester chips reached a record low. Recently, due to the huge shock in the crude oil market, polyester chips have also been affected and shocked.

As of the end of March, polyester semi-gloss chips fell to 4,300 yuan / ton, a decrease of 28.93% from the beginning of February. Subsequently, OPEC + finally reached the largest production reduction agreement in history, and polyester chips fell to rebound and rose to 4,650 yuan / ton, but with the recent sharp drop in the crude oil market, polyester chip prices fell slightly. The price of light section is 4350 yuan / ton. It can also be seen from the trend of the price of polyester chips that since 2019, the recent price fluctuation is the largest stage.

= Since April, the prices of PTA and ethylene glycol have shown a downward trend, but the price of polyester chips has recently rebounded. PTA and ethylene glycol, which are the main raw materials for the cost end of polyester chips, should be integrated. However, why did polyester chips break away from the two and stop rising?

Reasons for staggering:

"Black Swan" incident led to cost collapse

First of all, one of the reasons for the decline in polyester chips after the year is the collapse of costs caused by the "Black Swan" incident. Since February, PTA and ethylene glycol have shown a downward trend. Recently, it has been affected by the shock of the crude oil surface. As of now, the prices of the two have fallen further and have fallen below 3,000 yuan / ton. In terms of ethylene glycol, the decline is also very strong, approaching the historical low, only remaining at the edge of 3,000 yuan / ton. Therefore, it has a greater impact on the price of polyester chips.

The epidemic spreads, orders shrink, and production and sales are sluggish

In mid-March, the epidemic situation in foreign countries spread, foreign trade orders shrank significantly, the demand for downstream chip spinning factories weakened, and the transaction was light, and the price of polyester chips fell further. Although the chip prices have fallen sharply, polyester raw materials are still weak and weak, and downstream chip spinning factories are cautious in purchasing. Downstream chip spinning basically needs to be replenishment rhythm, only when the raw materials appear to be short-lived, the appropriate amount of chip production and sales is released. Therefore, polyester chips fell mainly in March.

Reasons for stop and rise:

Polyester staple fiber is hot, driving the production and sales of polyester chips

After the epidemic in foreign countries reached a new peak in mid and late April, it stimulated further demand for masks in the global market. The hot deals in the downstream textile market are medical fabrics such as hot-air cotton, melt-blown fabrics, and non-woven fabrics. The hot air cotton is as hot as melt-blown cloth, and its price is soaring like melt-blown cloth, and the supply is in short supply. The low-melting-point staple fiber of hot air cotton was driven by the short supply, and the price rose, and some manufacturers temporarily stopped ordering. In the case of soaring polyester staple fiber prices and tight supply, low-cost polyester chip spun staple fibers have become a new type of mainstream demand. At the same time, it has driven the demand for polyester chips. At present, the production and sales volume of polyester chips has caused its price to end the falling market and change into an upward market.

Polyester chips supply less than demand to provide price support

Affected by the epidemic situation and downstream demand in March, the operating rate of polyester chip manufacturers is not high, only 60%. And the polyester chip factory has also been in the accumulation cycle. As of the end of March, the mainstream stock of the polyester chip factory was around 25 days. However, due to the short-term hype factors of hot air cotton recently, the enthusiasm for downstream sliced textile hoarding is relatively high. The boost in the production and sales of chips has driven the current inventory of polyester chip factories to fall sharply. At present, the stocks of mainstream factories are relatively tight, and even oversold. With the shortage of inventory, the price of polyester chips has naturally risen.

Future market forecast: And this wave of upward trend, in the editor's opinion, may be difficult to continue. At present, the crude oil market has high inventory levels and fluctuating prices. The prices of PTA and MEG are expected to follow the fluctuations of crude oil, and there is a high possibility that prices will continue to remain low. Recently, medical fabrics such as meltblown fabrics and hot air cotton have been rigorously investigated, and the number of downstream hoarding manufacturers is gradually decreasing. In addition, the industry looks thick in the hollow state, and there is no effective support in the upstream and downstream, so the polyester chip market is difficult to continue to rise.

Taixing Hongyang New Material Technology Co., Ltd. has advanced equipment and superb technology. It mainly produces 500D ~ 4000D polypropylene high-strength yarn, polypropylene air-varying yarn, polyester air-varying yarn and polypropylene webbing. Hongyang products sell well both at home and abroad. The unanimous praise of our customers.

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