Market review of polyester filament yarn in 2018

Polyester filament yarn market was volatile in 2018, which was eye-catching, and the following part will have a brief review on the operation in 2018.

1. Prosperity was high, and the concentration rate heightened further with added new capacity and mergers and acquisitions.

New weaving and twisting plants were ample in 2017, and supply of PFY was once tight. PFY plants witnessed low stocks and high profit. Therefore, even though the external environment was not very optimistic and domestic economic data reduced, PFY market still welcomed capacity startup peak in 2018. The new POY and FDY capacity hit new high since 2014. By the end of 2018, the effective capacity of direct-spun PFY approached around 30 million tons.

High concentration rate on PFY market exerted stronger influence on industrial trend since 2016, and the concentration rate continued edging up after some large plants added new capacity and finished mergers and acquisitions by the end of 2018. Among the 30 million tons of capacity, there are 8 plants with over 1 million tons of capacity, sharing around 66% of the total. Among POY and FDY plants, there are 4 companies above 1 million tons each, and the concentration rate of POY market was higher, with the total proportion of these 4 enterprises at 61%. Big plants enjoyed higher influencing power and stronger voice in pricing.
Plants with more than 1 million tons of capacity
PFY POY FDY
Number of companies 8 4 4
Capacity proportion  66% 61% 46%
2. Disturbed peak season and slack season—operating rate declined after staying high at first, and inventory was low in the mid-year but high in early-year and year-end.
Market review of polyester filament yarn in 2018
2019-01-09 09:17:29 CCFGroup
Polyester filament yarn market was volatile in 2018, which was eye-catching, and the following part will have a brief review on the operation in 2018.

1. Prosperity was high, and the concentration rate heightened further with added new capacity and mergers and acquisitions.

New weaving and twisting plants were ample in 2017, and supply of PFY was once tight. PFY plants witnessed low stocks and high profit. Therefore, even though the external environment was not very optimistic and domestic economic data reduced, PFY market still welcomed capacity startup peak in 2018. The new POY and FDY capacity hit new high since 2014. By the end of 2018, the effective capacity of direct-spun PFY approached around 30 million tons.

High concentration rate on PFY market exerted stronger influence on industrial trend since 2016, and the concentration rate continued edging up after some large plants added new capacity and finished mergers and acquisitions by the end of 2018. Among the 30 million tons of capacity, there are 8 plants with over 1 million tons of capacity, sharing around 66% of the total. Among POY and FDY plants, there are 4 companies above 1 million tons each, and the concentration rate of POY market was higher, with the total proportion of these 4 enterprises at 61%. Big plants enjoyed higher influencing power and stronger voice in pricing.
Plants with more than 1 million tons of capacity
PFY POY FDY
Number of companies 8 4 4
Capacity proportion  66% 61% 46%
2. Disturbed peak season and slack season—operating rate declined after staying high at first, and inventory was low in the mid-year but high in early-year and year-end.
Market review of polyester filament yarn in 2018
2019-01-09 09:17:29 CCFGroup
Polyester filament yarn market was volatile in 2018, which was eye-catching, and the following part will have a brief review on the operation in 2018.

1. Prosperity was high, and the concentration rate heightened further with added new capacity and mergers and acquisitions.

New weaving and twisting plants were ample in 2017, and supply of PFY was once tight. PFY plants witnessed low stocks and high profit. Therefore, even though the external environment was not very optimistic and domestic economic data reduced, PFY market still welcomed capacity startup peak in 2018. The new POY and FDY capacity hit new high since 2014. By the end of 2018, the effective capacity of direct-spun PFY approached around 30 million tons.

High concentration rate on PFY market exerted stronger influence on industrial trend since 2016, and the concentration rate continued edging up after some large plants added new capacity and finished mergers and acquisitions by the end of 2018. Among the 30 million tons of capacity, there are 8 plants with over 1 million tons of capacity, sharing around 66% of the total. Among POY and FDY plants, there are 4 companies above 1 million tons each, and the concentration rate of POY market was higher, with the total proportion of these 4 enterprises at 61%. Big plants enjoyed higher influencing power and stronger voice in pricing.
Plants with more than 1 million tons of capacity
PFY POY FDY
Number of companies 8 4 4
Capacity proportion  66% 61% 46%
2. Disturbed peak season and slack season—operating rate declined after staying high at first, and inventory was low in the mid-year but high in early-year and year-end.
In the first-third quarter, overall prosperity of the whole industrial chain was increasing, and the new weaving and twisting plants started operation earlier than 2017, so POY and FDY plants gained higher profitability under tight supply. However, in the fourth quarter, supply of PFY became not tight with faster startup of new units and low run rate of end-users. Cash flow was squeezed and POY and FDY plants suffered losses. Profit of DTY shrank more apparently than that of POY and FDY compared with 2017 after 2-year successively rapid capacity add.