Direct Spun Polyester Staple Fiber: Tight Supply, But The Market Needs To Be Treated Cautiously.

Recently, the stock level of direct spinning polyester staple fiber enterprises has been kept low, and some enterprises even run short of stocks. And near the traditional Spring Festival, there are still some enterprises exist device maintenance plan, industry supply is generally tight. But after the Spring Festival, with the recovery of maintenance enterprises and the release of some new capacity, it is expected that the supply of industry will gradually become more relaxed.

Continuation of the second half of 2017, the "no waste" policy landing favorable, 2018 straight spinning polyester staple industry average profit of 357.74 yuan / ton, the overall profit level is better, industry supply and demand from surplus to balance.

Although the sharp increase of PTA in the 3 quarter of 2018 caused the downstream enterprises to bear the burden of cost, the short fiber enterprises were forced to start concentrating on limited production, and the lowest operating rate in the industry dropped to 63.5% during the year, even lower than the operating rate of the factory during centralized maintenance during the Spring Festival. But due to the limited production in the 3 quarter, the inventory level of short staple enterprises was well controlled, which successfully avoided the risk of heavy storage since the fall of the 10-11 month market.

Since December, the Sino US trade release has been favorable to a certain extent to stimulate the market. The middle and lower reaches of the enterprises have started to bulk up the stock, so the stock of short staple enterprises has started to remain at a low level. Since January 2019, the supply of enterprises has entered a state of continuous tension due to the macroeconomic benefits and the demand for stocking before the lower reaches.

Maintenance schedule for polyester staple fiber plant during Spring Festival

During the Spring Festival, there are still some short fiber factories in the maintenance plan, and the tight supply status before the festival will not change. According to long Zhong information statistics, before and after the Spring Festival, a total of 1 million 295 thousand tons / year polyester staple fiber device exists maintenance plan, including three Lane Lane short fiber repair time plan postponed, Yizheng chemical fiber repair time after the Spring Festival, industry maintenance is less than the same period last year.

On the whole, because most of the short staple factories were oversold many years ago, due to the increased load of PX installation in Fuhai city and the bad anticipation of PTA before and after the Spring Festival, However, after the Spring Festival, the operation rate of the downstream enterprises basically fell to the bottom. And after the Spring Festival, the 80 thousand tons of short fiber production capacity plan of Yangzhou and Jiangyin Xiangyang was added. With the gradual recovery of the maintenance equipment and the release of some new capacity, the supply of the industry will once again become loose and the price is also expected to yield.