polyester industry chain may face more pressure in Sep-Dec 2022.End-user plants are facing high stock pressure

Compared with 2021, polyester industry chain may face more pressure in Sep-Dec 2022.End-user plants are facing high stock pressure, as inventory in weaving plants and polyester plants is higher than past year. Meanwhile, Sep-Oct demand may not fare better than past year either. Reasons are as follows: a. the spread of pandemic has not stopped. The dynamic zero-COVID policy affects travel and consumption. b. The residents witness falling income. Taking the textile workers as an example, their wages have been reduced by 20-30% due to poor business and descending run rate in 2022. c. As the real estate industry is expected to be hard to rise apparently in the second half of year, the consumption of home textiles may be dragged down. export demand has peaked in the second half of 2021 and has come down this year