In the first three days of this week, driven by the rise in crude oil, PTA performed strongly. As the market closed on December 5, PTA futures began to surge. Affected by the strength of crude oil and PTA, the production and sales of polyester factories have changed from the previous decline. According to monitoring data from China Silk City Network, on December 3, production and sales reached 400%. Some polyester manufacturers have even begun to close the market and hesitate to sell. Against the background of high production and sales of polyester, the price of polyester filament has also been rising steadily. So, can the rise in polyester filament drive the weaving market? Will Boss Bu stock up on goods again at this time?
Polyester yarn has stopped falling and rebounded, and some weaving companies have chosen to stock up.
According to the editor’s visit to the market, it was found that there are indeed many cloth owners At this time, I would buy some silk, but a cloth boss bought three months’ worth of raw materials and couldn’t put them in the warehouse. The editor was also shocked!
Generally, the stocking cycle of weaving companies is about one month. Why did this boss buy so much! The editor believes that it is due to the following reasons:
1. Since the price of polyester yarn has continued to decline for a long time, an “inflection point” appeared during this period, based on the mentality of “buying up, not buying down” , some weaving companies began to stock up.
2. The factory is not on holiday yet and has no raw materials in stock. It is now the time to buy raw materials.
3. The gaming mentality of the cloth boss. There are still two months before the Chinese New Year. Now that the polyester yarn has just started to rise, I must buy it! In many past years, raw materials prices skyrocketed as soon as they opened after the holidays. Now is the starting point of the increase. If raw materials continue to rise in the future, the boss who stocked up the goods will make a lot of money!
Polyester yarn has insufficient power to rise, so don’t buy yarn
There are risks in gambling. It is not about stocking up before the year. It will definitely rise after the year. It is very possible that if you are not careful, the price will rise. All bets are lost. Therefore, some cloth bosses have expressed a “not optimistic” attitude towards the price and stocking of raw materials: the “bear market” in the downstream manufacturing market and the high inventory of polyester factories have also made many cloth bosses more cautious in their choices.
Mr. Zhang from Suzhou Hongliu Textile Technology Co., Ltd. said that although polyester yarns are currently rebounding, their factory still has a lot of yarn in stock, and is also affected by uncertain factors such as Sino-US trade. They are currently Don’t consider buying raw materials.
Mr. Zhou from Suzhou Jiasheng Textile said: “We also imported some raw materials, but we took a little bit. Just seeing that everyone was buying, we bought less, which is safer. Also It’s just that funds are tight now. Many accounts receivable have not been collected, but many accounts payable have to be paid out, and there is no money to buy raw materials.”
Another market professional said he would not buy it! He said that raw materials cannot rise, and the current rise is only a superficial phenomenon. He is not optimistic about the overall situation of the weaving market. He believes that the market has been improving for a long time, and the market is about to enter a period of “cold winter”.
The editor believes that the worries of these cloth bosses are not unreasonable. Now the upstream and downstream of the weaving industry chain are in a state of high inventory, which also shows that the weaving market is not optimistic. According to monitoring data from China Silk City Network, the inventory of weaving manufacturers is about 35 days, and the inventory accumulation is rising.
In addition, the good production and sales of polyester yarn only alleviated the inventory pressure on polyester factories. This week, downstream stocking was concentrated, and polyester stocks fell further. Judging from the statistics of China Silk City Network, the overall polyester market inventory is now around 15-23 days; in terms of specific products, POY inventory is concentrated at 13-17 days, FDY inventory is around 15-20 days, and DTY inventory is around 15-20 days. The inventory lasts for about 21-27 days.
Conclusion
The editor believes that whether the market is good or not depends on the inventory. Affected by the high inventory of upstream and downstream enterprises, textile raw materials The upward momentum is insufficient. On December 7, the production and sales of polyester yarn in Jiangsu and Zhejiang fell back to average today. The soaring production and sales of polyester is just a flash in the pan. It is still a bit difficult to stimulate the weaving market through the increase in polyester yarn. </p
