Asian polyester demand continues to weaken, producers' inventories remain high

Source: Sinopec News Network November 21, 2019

According to a report from the ICIS website on November 15 in Singapore, it is expected that Asian polyester demand will continue to slow down, because most downstream devices have completed the year-end orders, and the enthusiasm for replenishing goods at this time is low.

As of the week of November 12, spot denier (POY) 150 denier (D) price was estimated to be 0.90-0.92 USD/kg (offshore price in Northeast Asia), which was USD 0.01 lower than the high end of the price range of the previous week kg.

According to ICIS data, the price of 150D stretch textured yarn (DTY) fell by US$0.02/kg at the high end to US$1.15-1.18/ton (offshore prices in Southeast Asia and India) during the same period.

Due to falling raw material costs and increased inventories, spot polyester prices have been declining since mid-September.

The recent weak raw material terephthalic acid (PTA) and monoethylene glycol (MEG) markets have weakened, casting a shadow on polyester contract prices.

A major regional producer stated: \"The end of the year is usually a low season, so we do not expect the polyester market to rebound\".

Major exporters had to cut prices and promote sales because the downstream devices were not keen to replenish the goods.

At the same time, polyester producers are facing rising stocks. Yarn producers' inventory increased from 10-24 days a week ago to 11-25 days, while fiber producers' inventory increased from 7-12 days to 6-13 days.

The manufacturer stated: \"Increase in inventory means slower consumption\".

In the case of sluggish demand, polyester producers in India and Southeast Asia are also reducing production.

An Indian manufacturer said: \"Our sales are very slow, and buyers are not in a hurry to place orders.\"