When will the predicament of inverted polyester costs be broken

  From the perspective of the entire textile industry's upstream and downstream sectors, the biggest bottleneck currently facing the entire industrial chain remains the cost issue. Compared to early April, the transaction focus of polyester filament has shifted significantly downward. Taking the common POY150D/48F as an example, the average price at the end of April decreased by 525 yuan/ton compared to the beginning of the month, a drop of 5.68%. However, conversely, affected by high oil prices, the cost of polyester filament is constantly rising: on May 6th, the spot price of PTA was 6920 yuan/ton, an increase of more than 600 yuan/ton compared to the low point in mid-April; the spot price of ethylene glycol was 5290 yuan/ton, also an increase of 300 yuan/ton. With rising costs but declining product prices, many companies are experiencing cash flow inversions. Cost inversion is not a problem unique to the polyester sector; the downstream weaving segment is also caught in this vicious cycle, which is the core reason why many weaving companies chose to suspend operations and take holidays during the May Day holiday this year. With the situation in the Hormuz deadlocked, neither the US nor Iran is willing to back down or engage in a full-scale war. According to current optimistic market expectations, international oil prices are unlikely to return to their previous reasonable range until at least the third quarter of this year. For most textile industry workers, the road ahead is essentially the same as in the past few years: the market is tough, but they cannot stop; they can only grit their teeth and persevere, waiting for a turning point in the situation.