Since October, polyester prices have suffered successive setbacks. However, with the arrival of cold air and the boost in market conditions, polyester prices have reversed their decline and have the confidence to raise prices again.
On November 9, polyester factories raised the price of polyester filament at almost the same pace as the arrival of cold air. So can the price increase of polyester filament really be supported?
Polyester and upstream cutting mats
Crude oil is the leader in the polyester industry chain, and the trend of crude oil has always been an important factor affecting downstream prices. But now there seems to be a bug in this iron law, and the market direction is a bit blurred.
First of all, PTA has begun to separate itself from crude oil. As we all know, the closer the industrial chain is, the greater the impact. If there is a distance between PTA and crude oil, it is just naphtha. As far as the market trend in recent days is concerned, crude oil When prices rise, PTA falls; when crude oil falls, PTA rises.
Then let’s talk about our polyester yarn. Polyester yarn is further away from crude oil, so its relationship with crude oil will definitely be stronger. But what’s even more rebellious is that polyester yarn is now separated from PTA. Anyway, now this The situation upstream can be said to be chaotic.
The market situation in the past when everyone was in unison is no longer the case. The big guys in the polyester industry are quietly making their own plans. What is going on?
Adjust prices to fix profits
During this period, the polyester factory is in dire straits, and the profit cannot be repaired. According to the quotation as of November 20, the profit FDY of 150D polyester yarn is -298 yuan/ton, and the POY is -398 yuan. / ton, DTY is 150 yuan / ton.
Even though it has been rising, the profits are still declining and cannot keep up with the rise of PTA. Therefore, you can see that when PTA rises, polyester yarn rises; when PTA falls, polyester yarn continues to rise.
Can’t this polyester factory be in a hurry to repair its profits? With the current profit situation, if a market situation suddenly occurs, for example, before the Chinese New Year, many weaving companies will carry out a centralized purchase to stock up on 2-3 pieces. In March, I didn’t have the confidence to buy raw materials even if I wanted to promote sales and stimulate the downstream.
Therefore, it can be said that the current price increase of polyester yarn is for better promotion in the future, and it is better to increase the price of polyester yarn than to decrease the price now when the market is good.
Rising polyester yarn prices support the market
Everyone must have been deeply impressed by the good textile market these past two days. In this circle of friends, warehouses are sometimes empty, and sometimes trains are leaving in the middle of the night, just like it is the peak season.
At this time, a stable raw material price played a key role in stabilizing prices. Now terminal clothing companies are also very sensitive to the price of fabrics. In order to save costs, price-only situations have occurred frequently this year.
When customers lower prices, the price of raw materials will often drop. So the cloth should also be cheaper, and then this hard-won market will turn into an unprofitable order.
Therefore, the current price increase still has a certain supporting effect on the market, but in fact it will not increase costs for textile companies. After all, the cloth sold now is still woven from the raw materials purchased before.
In short, from the current point of view, the entire polyester industry is going its own way, holding back its own mistakes. In this situation, polyester yarn must regard repairing profits as its first priority, and the current downstream market is okay. , there is certain support on the demand side, so it is a good time to slowly increase prices to bring profits back. In the short term, polyester prices will still maintain a volatile upward trend.
</p
