Chemical Industry Research Report Week 22

Chemical Industry Research Week 22 Report:  a blooming turning point of polyester industry has emerged. Recently, polyester stocks have fallen sharply, and the price difference has also improved. The second quarter has improved month by month, and industry profits are expected to return to normal in the second half of the year.

The inflection point of the polyester boom has emerged: since the second quarter, polyester stocks have been rapidly depleted, and the production and sales ratios have exceeded 100% from April to May. The latest stocks have dropped to 9 days, which is below the five-year average; the price difference has also rebounded from the bottom of less than 1,000 yuan / ton To about 1200-1300 yuan / ton. At present, domestic terminal demand has returned to normal, and overseas demand will gradually recover as the epidemic situation is getting controlled. Combined with the current extremely low price level, the industry's upward turning point is already very clear.

Profit is expected to return to the center: The impact of this year's epidemic and oil price on polyester profit is mainly reflected in the one-time inventory decline. From the perspective of price difference, it is actually better than 19 years, which reflects the significant improvement of polyester's upstream and downstream pricing power. As the new production capacity is all concentrated on the faucet, the long-term supply and demand growth rate of polyester is basically matched. 

Source from dfzq