Polyester downstream plants' operating rate reaches peak-season expectation

The operating rate of DTY plants, fabric mills and printing and dyeing plants has recovered to the average level in past years since Sep, which hit historic low in Apr-Aug and could be described as recovering to the earlier anticipation.

Operating rate of DTY plants ascended to 82% in Zhejiang and Jiangsu: near 90% in Xiaoshan and Shaoxing, around 70-80% in Changshu, near 80-90% in Changxing and Taicang, and above 70% in Cixi.

Operating rate of fabric mills rose to 70% in Zhejiang and Jiangsu: above 70% for water-jet mills in Wujiang, above 80% for water-jet mills in Changxing, near 70-80% for water-jet plants in North Jiangsu, at 80-90% for warp knitting plants in Haining, at 50-60% for warp knitting plants in Changshu, and near 50% for circular knitting plants in Shaoxing and Changshu.

Operating rate of dyeing plants advanced to 76% in Zhejiang and Jiangsu: around 80% for plants in Xiaoshan, Changxing and Shaoxing, near 70-80% in Wujiang, around 70% in North Jiangsu, around 50-60% in Changshu and near 80-90% in Haining.

Stocks of grey fabrics have descended while sales and orders were seriously diversified among different varieties.

Inventory of warp knitted fabrics decreased smoothly in Haining, which has below one week in some plants. The orders for warp knitted fabrics sustained sluggish in Changshu and producers saw low run rate and mounting inventory.

Sales of some circular knitted fabrics for autumn and winter fabrics started rising in Shaoxing, including double-faced Roman fabric and scuba knitting fabrics and single-faced fabrics for milk yarns and super-soft terry fabric etc., while the improvement was worse than past years. Some factories refused to take orders under low price and with tight order schedule.

Dull water-jet fabrics for apparels performed well in Wujiang and sales of some dull two-component fiber fabric also presented well. However, the stocks of most conventional fabrics sustained high. Domestic sales of water-jet fabrics for home textiles slightly grew in Changxing but export orders kept bleak. Water-jet fabrics for home textiles were weaker than those for apparels in North Jiangsu.

Comprehensive stocks of warp knitted fabrics in Changshu and water-jet fabrics in Wujiang and Changxing remained high now, except for reducing inventory of warp knitted fabric in Haining and circular knitted fabric in Xiaoshan and Shaoxing. The comprehensive stocks of grey fabric decreased to above 30 days in Zhejiang and Jiangsu, still higher than the average of 2018-2021 but lower than previous months.

The operating rate of DTY plants and fabric mills has hit recent high and may be hard to rise further. Sales of grey fabrics are estimated to remain diversified.

If the operating rate of PFY producers and downstream plants sustains current level, PFY manufacturers are expected to see falling inventory burden on the month. Polyester fiber market may see better operation in Sep and Oct.