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Insight | Time: Jun 9 2021 3:21PM
Who empowers polyester yarn to achieve such attractive profits?
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Polyester yarn shines this year with healthy profits. The cash flow of CVC-type polyester/cotton yarn has moved up to five-year high and TC-type one and pure polyester yarn also see years鈥 high.


There are two factors behind the improvement of polyester yarn cash flow.


I. The improvement of demand.

1. The sound demand for cotton yarn spurs that of polyester/cotton yarn. Since last Oct, cotton yarn demand has soared, especially the products for home textiles, driving the sales of CVC-type polyester yarn. Some TC-type polyester/cotton yarn mills and pure polyester yarn mills have shifted to produce CVC-type one, leading to the reduction of TC-type polyester/cotton yarn and pure polyester yarn supplies. 


2. The smooth sales of casual wears boosts blended yarn. The relapse of the pandemic outside China made more people work at home, which promotes the consumption of casual wears such as hoodie, thus blended yarn is buoyed.


II. Discounts of raw materials side.

Since free fall in Mar, direct-spun PSF market has not seen strong demand. The procurement is mostly driven by rigid demand. In addition, with the decline of PSF futures, the trades by basis show advantage, which makes direct-spun PSF plants fail to stabilize the market by resistance of lowering price. 


Under the background of strong demand and volatile raw materials at low level, the cash flow of polyester yarn gets considerable.

[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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