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Polyester market development and demand outlook for 2018
!!Yuan Yuan, Huarui Information

2018-03-29 15:05:36
Yuan Yuan, Huarui Information, presented her report of Polyester market development and demand outlook for 2018 

The report mentioned recovery of prosperity index of polyester industry to put forward a question- The market turns better? Then she gave the answers. 

1. Looking from the macro data, the market did recover somewhat. Profit moved up and financial cost hit the bottom. 
2. In terms of the polyester industry: polyester demand indeed increased in 2017, yet it may be partly caused by restock of end-users and speculative demand. Market players tend to believe the coldest day has past, yet worry the favorable have been over-reacted.  

About the future- 
PFY: production and capacity increased while exports declined in 2017. New capacities planned to start in 2018 reached 3.15 million tons/year, intensively in Q2. Despite rising demand, inventory may accumulated. 
PSF: many capacities were eliminated in 2017 and the output inched up caused by high operating rate. The export kept flat. In 2018, the capacities may be expanded. Differential products will develop rapidly.
PET bottle chip: the capacity and output both improved in 2017 and export performed well. The demand depends on overseas market in 2018 and the profits are up to startups of domestic units. 

About the operating environment of polyester market 
Cost side: cost in auxiliary materials, production, logistics and environmental protection input all increase. 
Capital: financial system is related to business entities. Environmental protection has large impacts on end-user. Cost in upstream stays firm and the profits are modest. 

In conclusion: demand is expected to keep steady growth; polyester production is expected to grow by around 8%; Many new capacities to start in H1 2018; demand may face pressure in H2 2018. 
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