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Large polyester factories in Jiangsu and Zhejiang agreed to reduce their output by about 10% in mid-May.YellowfintunaThe price increase was subsequently announced. The purpose of production reduction is to eliminate inventory and ensure profits; the market price of polyester filament is low, but recently the downstream purchase volume has increased, and the operating rate has increased to 83%.Yellowfintuna.13%.

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[large polyester factories in Jiangsu and Zhejiang reduce production and protect profits] with the downstream demand entering the off-season, Jiangsu and ZhejiangYellowfintunaThirty-five percent of the large polyester factories began to cut production in mid-May to cope with market changes. At present, the market price of polyester filament has fallen to the lowest point in half a year, and profits continue to decline. Although these big companies announced price increases on Thursday, the increases varied. Enterprises participating in the production reduction include Tongkun shares, Xinfengming, Dongfang Shenghong, etc., with a reduction of about 10%, and the time to restart production is uncertain. During the May Day period, some of the long-term units of Rongsheng Petrochemical and Hengyi Petrochemical were shut down due to transformation, resulting in a reduction of filament production capacity of about 1.6 million tons and a corresponding reduction in market supply. However, a week after the implementation of the production reduction measures, market analysts pointed out that the implementation of the production reduction is not satisfactory, and filament prices and profits are still falling, suggesting that the production reduction may not be enough. The person in charge of Xinfengming said that based on the company's own situation, the company has implemented a 5% production reduction of 10%. The current inventory is about 27 days, the price recovery is restorative, and the manufacturer has cancelled the discount. According to the person in charge of Tongkun shares, the company plans to reduce production by about 10%, depending on the inventory of the production plant. All enterprises participating in the meeting hope to respond to market changes by reducing production, and the key lies in follow-up sales. On May 24th, Hengyi raised the price of POY and FDY products by 600 yuan / ton over the original price. Industry insiders said that the purpose of reducing production is to get rid of inventory, while the price increase is to protect profits. Although the price has fallen, the demand has not decreased, and the price of crude oil will also affect the price of the industrial chain. After big companies raise prices, small ones tend to follow, and if there is rigid demand, the downstream market will continue to buy. From the profit level of per ton, some polyester varieties, such as POY, are in a state of loss in the past two months. From May 13 to May 24, profits rebounded somewhat, but the loss range remained at about 200 yuan / ton. The person in charge of Tongkun said that it is not easy to keep the products in summer, and the company hopes to reduce its inventory to the normal level by the end of June, which requires a production and sales rate of 120%. According to Baichuan Information, as of May 9, POY inventory is about 28-32 days, FDY inventory is about 21-26 days, and DTY inventory is about 25-30 days. After the reduction of production by large factories, the price of polyester products did not improve significantly, but downstream and traders began to actively purchase, believing that prices had hit bottom. From May 18 to 20, the purchase volume of downstream buyers increased significantly, with an average production and sales rate of about 180%. On Monday, it was as high as 350%, but then fell back to 40%, 60%, indicating that the market is not receptive to the price increase. It is worth noting that from January to April this year, the export performance of polyester filament was poor, and the export volume decreased by 7% compared with the same period last year.Yellowfintuna.58%, losing last year's strong momentum. In 2023, China's polyester filament export volume and export value increased by 24.97% and 25.92% respectively compared with the same period last year, mainly benefiting from the demand growth of developing countries such as India, Egypt and Turkey.