Positive demand feedback helps polyester rebound

  Looking at textile fibers, although polyester hit bottom and rebounded in mid December 2023, consistent with the triggering time of the second round of textile demand, the main reason for the increase in polyester fibers came from the cost side. The price of raw material - ethylene glycol continued to rise due to supply disruptions, and polyester products all experienced varying degrees of increase driven by the cost side. The positive feedback from the demand side has become a secondary factor in this market trend, helping to rebound the price of polyester products, with relatively large increases in polyester filament at low inventory levels.
  From the perspective of seasonal consumption, the textile industry usually ushers in a small peak season of demand in the first half of the year during the golden, silver, and fourth seasons. At that time, spring and summer orders will be fully issued, and the recovery of foreign trade orders at the end of 2023 will also have a boosting effect on the demand in the small peak season of 2024. Therefore, considering the late Spring Festival holiday in 2024, the weaving industry is expected to resume work gradually by the end of February, and the operating rate is expected to gradually increase. It is expected to recover to around 70% in mid to early March.
  In 2023, both the "barbecue economy" and the "ice and snow economy" have demonstrated the vigorous vitality of China's consumer market. Looking ahead to 2024, the textile industry will continue to demonstrate its potential, market-oriented, committed to improving the functionality, performance, and diversity of products, further stimulating the demand for textiles, and injecting new vitality into the entire textile industry.