Polyester raw material market is under heavy pressure

Sinochem New Online News has had weak polyester raw material prices since September this year. On November 30, the price of polyester chips in the East China market fell by 2,350 yuan (t price, the same below) from September 1, and the price of terephthalic acid dropped by 600 yuan, while that of paraxylene dropped by 750 yuan.

The reasons for the decline in the price of polyester raw material products are as follows: First, the recent international economic situation is complex, the slower US economic growth, the European debt crisis and other factors have increased the uncertainty of future Chinese textile exports, causing a slowdown in foreign demand. Signs. Second, in September and October of this year, China’s inflation increase was at a high level of 6.1% and 5.5%. In the face of severe negative interest rate conditions and a significant slowdown in consumer spending, the consumption of textiles and clothing in the domestic market was suppressed. Third, due to the high production cost of the downstream textile industry, a large number of textile SMEs have closed down, resulting in a significant reduction in downstream industry demand for upstream products. Fourth, the recent price fluctuations in cotton and terephthalic acid have affected the spot market such as terephthalic acid. Market participants continued to withdraw funds from p-xylene, polyester chips, and terephthalic acid products that had been highly valued by the market in the past and gradually flowed into high-yield financial derivative products.

Looking from the market outlook, the increase in the United States’ fiscal deficit and debt risk and the debt problem in Europe have severely weighed on the economic situation in the euro zone. As a result, orders for textile export products continue to decrease, and it is difficult to change in the short term. This also makes polyester raw materials still subject to certain Pressure. With the arrival of the end of the year, the financial resources are tight and there is insufficient demand for polyester raw materials in the market. In addition, some manufacturers will significantly reduce their inventories in order to complete the assessment indicators of their superiors, which will increase the market selling pressure and will inhibit the price increase of polyester raw materials such as polyester chips. Although the Central Bank decided to cut the deposit reserve ratio of deposit-taking financial institutions by 0.5 percentage point from December 5, 2011, the credit policy will be relaxed in the future, but in the current situation of many unfavorable factors, December The price of polyester raw materials may not increase significantly.