After the spring festival in China ended, the impact of coronavirus disease (COVID-19) was significantly observed in the polyester market, whose business has remained bad since. Most of the players of the polyester market have not been functioning well from the last few weeks. The transactions have been very less and not significant due to plunging polyester cost and oil prices and mounting inventory burden.
The companies which were open before the Spring Festival or those that cut the production in a small scale, have stocks for approximately 20-30 days; higher in Polyester drawn textured yarn (DTY) plants. The companies which were closed before the Lunar New Year holiday or cut production on a large scale, have stocks for approximately 10 days. The spread of novel coronavirus restricted logistics and slowed recovery of downstream market; as a result, inventory of the finished goods in polyester companies kept on increasing and is expected to touch a record high. Most of the polyester units have cut down production from end of January and early February with huge inventory burden.
