China’s polyester exports dip despite upbeat industrial chain

China's polyester product exports saw a decline in January-February 2024 compared to the same period last year. The total volume reached 1.8 million tons, down 18,000 tons year-on-year. This decrease is mainly due to a drop in polyester filament yarn (PFY) and staple fibre exports, which fell by 63,000 tons and 26,000 tons respectively.

However, there are some positive signs within the polyester industry chain. PTA exports increased 63,000 tons year-on-year, while PX imports rose by 130,000 tons. This suggests healthy activity upstream of polyester production. The decline in PFY and staple fibre exports is a concern, as they were major contributors to growth in 2023. However, exports of downstream products like polyester yarn and woven fabrics, particularly filament woven fabrics, actually grew year-on-year. This suggests early order confirmations from overseas buyers.

Overall, most textile chapters 50-63 saw export growth in January-February, exceeding even 2022's performance. This initial optimism stemmed from pre-holiday market stocking driven by expectations of high post-holiday demand. However, post-holiday orders fell short, dampening market sentiment.

While the data for filament yarn and staple fibre is disappointing, the industrial chain as a whole shows promise. The impact of the Lunar New Year on these first two months is unclear, and the future demand trend remains to be seen.