Polyester demand enjoys support in Jun

Entering Jun, the operating rate of fabric mills in Zhejiang and Jiangsu remained tolerable.

On one hand, under current run rate (at above 70% in fabric mills of Zhejiang and Jiangsu), sales of grey fabric were faster than May, and the overall stocks of grey fabric only changed slightly in Jun. The delivery volume could be basically balanced with the production in many mills. Orders in some downstream enterprises could guarantee production until end-Jun or early-Jul.

On the other hand, feedstock prepared in downstream companies was ample now. PFY companies urged downstream buyers to pick up goods, and many downstream players chose to sustain operation and turn feedstock stocks into the stocks of finished goods as POY and FDY has quality guarantee period.

Therefore, the run rate of downstream companies is supposed to gain support in Jun-Jul.