Polyester enterprises in India are likely to continue facing pressure in the next two months. As per CCF Group, downstream buyers are expected to purchase polyester at low prices and adopt a sidelined attitude when PFY price is high on the back of weaker demand. Polyester Filament Yarn (PFY) companies may cut price periodically to improve sales and gain profit. Their sales may improve periodically. Downstream fabric manufacturing and twisting market will expand capacity substantially in 2021.

As per some manufacturers, PFY exports have reduced since the beginning of 2021.One company received 5,000-6,000 ton of PFY orders to India in March but almost did not take orders in April. Falling PFY exports to India also indicated diminishing textiles orders in India indirectly. Whether this portion of orders were transferred to China or other Southeast Asian countries is hard to be verified.

Traditional peak season performed worse than anticipated in March-April. Orders in the first half of year have gradually come to an end.. Printing and dyeing market witnessed moderate performance but was still worse than the appearance in March-April in the past years. Dyeing plants were supposed to run at around 95 per cent of capacity during peak season in previous years. May-July are traditional off-season on textiles and apparels market. Overall market may be in dilemma: Orders taken before will gradually complete delivery while new orders are limited. Operating rate of downstream plants may continue declining amid meager profit. Players will not see improving demand before mid-Jul.

Overall market may not be optimistic. Orders change in late-May should be noted. Domestic sales will be thin in May by convention but summer orders may be stimulated by the online shopping spree on June 18. Therefore, some downstream buyers may replenish feedstock. In addition, some small-batched export orders may gradually emerge from late-May by convention.