In the fourth quarter, downstream demand has significantly underperformed compared to last year

In the fourth quarter, downstream demand has significantly underperformed compared to last year. After a brief recovery during the traditional peak season in October, downstream demand began to show a gradual downward trend. Some customers mentioned that this year's peak season lasted only a short time, with business picking up for just over 20 days before cooling off. Others felt that there was hardly any peak season in the second half of the year.

Demand was worse than anticipated in the fourth quarter. The inventory of chemical fiber plants, DTY producers and fabric mills reduced slowly and was apparently than the same period of last year, but the feedstock remained low as players lacked confidence. The inventory of grey fabrics has been higher than the corresponding period of past years. The operating rate of downstream plants may be lower than the first half of this year in the first half of 2025.