40%
100%
110%
130%
……
This year, both the polyester raw materials and the weaving end are in a very weak state, especially in terms of profits, which is appalling.
The former “overlord” PTA lost nearly 100%, and MEG lost more than 130%!
PTA, as the leader of the polyester industry chain, once swallowed up the profits of the entire industry chain. However, with the rapid expansion of production capacity and insufficient downstream demand, the era of PTA “making all the changes” is gone forever. , especially in terms of profits, it has fallen from the year’s high of 1,787 yuan/ton to 62 yuan/ton, a drop of more than 96%!
Ethylene glycol has been in decline in the first half of the year. Entering September, thanks to low inventory, ethylene glycol The market improved slightly and profits began to turn around. In particular, the attack on Saudi oil had a greater impact on ethylene glycol, with profits rising to US$71/ton, reaching the profit point in the past six months. But then, the demand for polyester filament sluggished, the “Golden Nine and Silver Ten” period lacked momentum, and the ethylene glycol market began to weaken. As of November 5, the profit of ethylene glycol fell to US$42/ton, compared with US$109/ton at the beginning of the year. The drop even exceeded 130%!
Polyester filament production and sales fell short of expectations, and profits fell by more than 110%!
After entering September and October, the production and sales of polyester filament are not ideal. In addition to the routine replenishment and invoicing needs, the demand for polyester filament from weaving manufacturers is not strong. In the past two months, Polyester filament production and sales have exceeded 100% only 12 times, which is far from the traditional “Golden Nine and Silver Ten” expectations.
Production and sales are poor, demand is insufficient, polyester filament inventory is also at a high level, and profits are severely squeezed. As of the end of October, POY 150D’s profits have shrunk by more than 107%, DTY 150D’s profits have shrunk by more than 92%, and FDY 150D’s profits have shrunk by more than 111%!
At present, the demand for autumn and winter fabrics has begun to enter the off-season again, and it is time to place orders for autumn and winter fabrics It has come to an end. At the same time, clothing companies have large inventories. Many well-known clothing companies were forced to close down this year due to huge inventories. Therefore, even if clothing companies place orders for next spring and summer, the order quantity will not be large. Weaving companies are very interested in polyester. The demand for filament yarns will also decrease accordingly, but the current operating rate of polyester manufacturers is 90.2%. With high operating rate + low demand, it is expected that polyester filament profits will be difficult to make a big breakthrough in a short period of time.
The price of 190T polyester taffeta gray fabric has dropped by more than 40%, and the machine rate is only 10%!
Since this year, weaving companies have high inventories, few orders, and profits are also shrinking. As one of the most common varieties, polyester taffeta was sold out last year. This year, it has been “losing money every day”. Recently, some companies even revealed that many polyester taffeta manufacturers in surrounding areas sold their stocks too high due to poor market conditions. If we don’t go out, a lot of businesses will go bankrupt. In April this year, the price of 210T polyester taffeta was about 2 yuan/meter, and the price of 190T polyester taffeta was about 1.6 yuan/meter. However, after more than half a year of poor market conditions, sales, and low sales, 210T polyester taffeta was sold at about 2 yuan/meter. The current selling price is around 1.3 yuan/meter, a decrease of 0.7 yuan/meter, or a decrease of 35%; the current price of 190T polyester taffeta is about 0.9 yuan/meter, a decrease of 0.7 yuan/meter, or a decrease of 43.75%.
Looking at the rate of 190T polyester taffeta machines, the machine rate was around 120% in March and April last year. At that time, the environmental protection seals in Shengze area became tighter, eliminating a large number of backward spray machines. At the same time, water looms and peripheral looms have not flourished. The supply in the market exceeds demand, and polyester taffeta fabrics are “hard to find.” However, after the rise of peripheral water-jet looms this year, the production and sales of conventional varieties in the market have been difficult to maintain, and profits have begun to be squeezed. Especially in the off-season of July and August, most conventional varieties are on the verge of losing money. At present, the rate of 190T polyester taffeta machines is only around 10%, a decrease of nearly 110%.
From a profit point of view, the market is really “unsightly” this year. While the pressure on the industrial chain is rising, profits have fallen. Nothing to fall. Many companies with poor ability to withstand the waves have closed down this year, and have also undergone many transformations. Most companies have begun to develop new fabrics, and the results have been good. It may be difficult to see a big improvement in the market now, but there may be a better turning point next year.
Although life is cruel and reality is very skinny, you still have to have dreams!
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