China’s polyester market faces challenges from both upstream and downstream sectors, resulting in suppressed sales and mounting inventory.

Upstream market, particularly PX, was the strongest due to low inventory and intensive turnaround, while PTA market successfully transferred cost to the polyester sector.

However, some downstream plants suspended or curtailed production due to high-priced raw materials. Despite the challenges, the polyester market has shown high resilience, with the polymerization rate remaining high even with new capacity.

Polyester companies are finding it difficult to cut production due to labor and cost issues, and the inventory burden is still bearable. Downstream plants are calling for faster production suspension, and coupled with strongly soaring feedstock futures, polyester companies were forced to cut prices for promotion.

The PFY stocks of DTY plants and fabric mills may guarantee production until next week, but sales are estimated to remain low, and the inventory is expected to mount in April.

The polyester industry is encountering accumulating contradictions, and how long companies can withstand pressure from losses and stagnated sales remains to be seen.