Trading of PIY has been very scarce after big PIY plants intensively raised price two weeks ago. The price of PIY soared by around 1,000yuan/mt two weeks ago but was stable last week. Downstream plants were unwilling to accept high price and were hard to transfer cost. With weak polyester feedstock price, price of downstream products were also hard to increase. Therefore, stocks of PIY kept mounting. How to cope with such status? PIY companies chose to slash operation to curb price from decreasing.
The operating rate of PIY plants kept reducing in recent two weeks. By Jul 7, the theoretical operating rate of PIY plants decreased to around 60%. Solead also intends to slash run rate to 90%.
|Operating rate of big PIY companies|
|Guxiandao||Around 80%||Around 70%||Around 65%|
|Hengli||Around 85%||Around 70%||Around 70%|
|Unifull||Around 65%||Around 65%||Around 65%|
|Billion||Almost 65%||Almost 65%||Almost 65%|
|Hailide||Around 90%||Around 75%||Around 60%|
|Solead||Around 100%||Around 100%||Around 100%|
|Sanwei||Around 65%||Around 65%||Around 65%|
|Oriental Industries||Around 90%||Around 80%||Around 80%|
|Hyosung||Around 100%||Around 100%||Around 100%|
|Zhejiang Kingsway||Around 60%||Around 50%||Around 50%|
|Shuangfeng||Around 60%||Around 60%||Around 60%|
|Wenlong||Around 75%||Around 75%||Around 75%|
PIY companies have suffered losses since the second quarter of 2021. To revert the plight, PIY companies showed strong determination to prevent price from decreasing. Therefore, some plants chose to scale down output to stabilize price rather than discount price for promotion. As for market outlook, unless price of PET fiber chip greatly decreases, price of PIY may remain firm in short run, waiting for the acceptance of downstream players.
Post time: Jul-28-2022