In the past half month, the price of polyester filament has begun to drop. After finally waiting for the price reduction, the downstream weaving end does not seem to be excited. It can even be said that there is insufficient buying momentum and the trading atmosphere is weak.
In this half month, the average production and sales of polyester filament was less than 50%, only 49.5%. It can also be seen from the chart below that since the 12th, production and sales have not exceeded 100 and have been hovering at a low level. This situation occurs from the end of July to mid-August, which can be said to be the slowest time of the year, which is understandable. However, we are still in the traditional “Silver Ten” stage, but a similar situation has occurred. What is going on?
Buy up or down
First of all, since this year, based on the production and sales patterns of polyester yarn manufacturers, the editor has concluded that weaving manufacturers are more inclined to “buy up rather than buy down” when purchasing polyester. The price of polyester yarn has fluctuated greatly recently. It is difficult for weaving companies to seize the low price and can only accept it reluctantly. Most of the time, purchases are made on demand based on orders received, and occasionally a wave of stocking up occurs when raw materials suddenly rise in price.
Manufacturers usually restock at the end of the month
Secondly, due to the issue of polyester processing fees, the factory’s overall profit margins are limited during the week. To put it bluntly, the promotion efforts are average and cannot stimulate the purchasing desire of weaving manufacturers, resulting in mediocre production and sales. And most of the rules this year are that polyester factories have a big sale at the end of the month and the weaving factories have a big replenishment. Therefore, if the weaving factories don’t buy in the past half month, they are waiting for the end of the month promotion to restock.
Clothing demand drops again
Finally, and most importantly, the terminal has little demand for clothing. Especially in October, downstream fabric companies said that the number of orders received was not as good as in September. Domestic trade orders were generally placed this week. Domestic trade orders are mainly online and e-commerce orders for hard-demand winter fabrics. Domestic trade brands and market orders still maintain the hard-demand mode, mainly for winter warm thick woven fabrics and down fabrics. At present, the order volume is still far behind compared with previous years, and large goods are issued in a narrowed manner. Foreign trade orders are still mainly based on sporadic placement of small tanks for some brands, and fewer large goods are issued.
Terminal demand is not large, and the delivery speed of gray fabrics from weaving manufacturers is slow, the inventory quantity is rising, and manufacturers have difficulties in capital turnover. With less liquidity on hand, weaving manufacturers will naturally not purchase excess raw materials beyond the orders. In addition, as the end of the year approaches, the peak period of need for cash will come, and Boss Bu will not use cash casually.
Although industrial supply and demand has improved in the short term, it is still not enough to support the absolute price trend; in the future, with the restart of equipment and the commissioning of new equipment, the pressure on its own supply will still be high. At the same time, the terminal textile peak season is about to end, and industry insiders are pessimistic about terminal consumption. Therefore, it is difficult for the production and sales of polyester filament to improve in the later period.
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