Polyester demand in Asia continues to be weak

According to reports, Asian polyester demand will continue to slow down as most downstream units have completed year-end orders and at this time there is less enthusiasm for replenishment.

By November 12, the 150-denier (D) spot-oriented yarn (POY) price was estimated to be $0.90-0.92/kg (FOB Northeast Asia), which was $0.01/kg lower than the high end of the previous week's price range.

According to data, the price of 150D stretch textured yarn (DTY) in the same period fell by $0.02/kg to $1.15-1.18/ ton (FOB Southeast Asia and India).

Due to falling raw material costs and increased inventory, cash commodity polyester prices have been falling since mid-September.

The recent weakness in the raw material refined terephthalic acid (PTA) and monoethylene glycol (MEG) markets has cast a shadow over polyester contract prices.

A major regional producer said: "The end of the year is usually the off-season, so we don't expect the polyester market to rebound."

Major exporters have to cut prices because downstream installations are not keen to replenish goods.

At the same time, polyester producers are facing rising inventory levels. Yarn producers' inventory increased from 10-24 days a week to 11-25 days, while fiber producers' inventory increased from 7-12 days to 6-13 days.

The producer said: "Increased inventory means slower consumption."

In the face of weak demand, polyester producers in India and Southeast Asia are also reducing production.

"Our sales are slow and buyers are not in a hurry to place orders," said an Indian producer.