Downstream demand is expected to weaken and the speed is fast amid the pandemic

The spread of pandemic is critical to the demand change, especially the pandemic control and prevention in some textiles wholesale markets. Seasonal demand may soften from Nov. Pessimistic view is held toward domestic sales and export of spring textiles and apparels near the Spring Festival holiday.

PFY companies discounted price successively in end-Oct, while sales improved limitedly. Price was not an issue now. Market players lacked confidence and faced supply/demand problem. Downstream buyers will continue replenishing only to cover the pressing demand no matter how much price is discounted. Stocks will be hard to fall even with price promotion. PFY companies may be pressed by price and profit. With ongoing high inventory and weaker demand, the only way-out for polyester companies may be the production curtailment before the end of year. If companies are not active in cutting output but being forced to slash production, the losses may continue and even expand.