In August, due to the rising price of raw material polyester filament, textile clusters in many places frequently issued joint production suspension initiatives.
On August 4, the Tongxiang Warp Knitting Chamber of Commerce took the lead in issuing a production suspension proposal.
On August 6, the warp knitting industry chambers of commerce in Wujin, Haining, Tongxiang and Changshu issued a joint production suspension proposal.
On August 6, Haining Warp Knitting Association issued an appeal to leading upstream chemical fiber companies.
On August 6, the Textile Industry Association of Jiaojiang District, Taizhou City issued a production suspension proposal.
The initiative targets chemical fiber companies, believing that chemical fiber companies are the main culprit of the rise in raw materials. Under the threat of rising raw materials and promoted by the joint production suspension initiative, downstream weaving companies have frequently suspended production and restricted production, and the operating rate of looms has repeatedly reached new lows.
With the pressure on raw materials, polyester factories also limited production
But ironically, by mid-September, chemical fiber companies, which were frequently complained about by weaving companies, also began to limit production.
It is reported that:
Xiaoshan Shuangtu decided to stop slicing production from September 12th, reducing the daily load by 350 tons/day;
Wujiang Xinmin reduced production by 10%, involving 150 tons/day of filament, slicing 150 tons/day;
Zhangjiagang limits production to 100 tons/day;
Shaoxing ancient towpath has limited production to 200,000 tons starting from August 11, mainly supporting filament;
Shaoxing Tiansheng from 9 Starting from March 11, it is planned to limit production to about 300,000 tons, which will take about 45 days;
Slicing and polyester staple fiber have also frequently cut production.
In addition, polyester filament yarns are currently taking some promotional activities in order to reduce inventory. Weaving companies can get 150-200 yuan/ton when purchasing filament yarns, depending on the purchase amount. discount. It can be said that although the price of polyester filament has not dropped significantly on the surface, the actual transaction price of polyester filament has dropped much lower than before.
Buy up but not down, polyester factory production and sales fell below 50%
The production reduction is first of all to protect prices. Starting from the end of July, PTA, driven by PX, started a crazy market, rising from around 5,500 points to more than 9,000 points, an increase of more than 60%. Affected by this, the price of polyester yarn also increased significantly during this period. During this period, the increase in polyester filament yarn prices was generally between 30% and 40%, which could not completely offset the cost impact of the increase in PTA. Generally speaking, the profits of polyester manufacturers have dropped significantly compared with early July.
Now, PTA futures have begun to “fall out of control” and will most likely continue to fall in the future. At the same time, PTA spot prices are still at a high level of 9,200-9,300 yuan/ton. If the polyester manufacturer is fully producing, it must use PTA, which is currently priced at more than 9,000 yuan per ton. However, the price of polyester filament is falling, so for the polyester manufacturer, it is thankless to fully produce now, and it is also accompanied by Things that are losing money.
On the other hand, it is purely to sell silk and reduce inventory. In the textile market, it is very common to buy up but not down. For companies that buy raw materials, if the price of silk has been rising when buying, although the weaving companies verbally complain about the high price, they will not have too many concerns when buying. Generally speaking, there will only be chemical fiber factories. With sales restrictions, no weaving companies will buy less because the price is rising; if polyester yarns fall, it will be a different situation. At that time, some weaving companies will often shorten the procurement cycle because the later they buy the raw materials, the cheaper they are.
Now, polyester filament has reached the point of decline, and downstream weaving companies are waiting and watching, unwilling to buy yarn at a high point. If the chemical fiber companies do not find ways to digest the inventory at this time and sell the silk at a high price, then if the silk price falls in the future, all the losses will be the profits of the chemical fiber companies.
But judging from the results, the effect of the production reduction is not ideal. The current production and sales of polyester factories are still hovering around 50%.
Naturally, the downstream weaving companies were still protesting the unreasonable price increases of chemical fiber companies last month and jointly suspended production and restricted production. As a result, this month, chemical fiber factories were forced by the situation. , he also stopped production and limited production. People have to sigh: I never thought that such a arrogant chemical fiber factory would have the same problem as Boss Bu!
</p
