Last Wednesday (7month13), PTAThe futures suddenly fell to the limit, and the friends who sold silk posted on WeChat to complain, why did it suddenly drop like this, and now the silk can no longer be sold.
The result is this Monday (7month18 day), PTA The futures suddenly rose sharply again6%, and suddenly everyone seemed to come to buy silk. According to this friend’s verbal description, the truck blocked the factory door, and the inventory was basically cleared, and even short sales orders were opened for half a month.
I can only say that the ups and downs of life are so exciting!
Why did weaving companies start purchasing polyester yarn on a large scale this time?
Weaving factory raw material inventory is low
Affected by the ups and downs of upstream raw materials and shrinking end demand, weaving companies generally have a harder time closing down this year. Both the gray fabric inventory and the capital chain are under greater pressure, and they are more sensitive to costs. Therefore, polyester Silk often adopts a buy-and-use strategy.
This strategy does not put too much money on raw materials. On the other hand, it also keeps the factory’s polyester inventory at a low level. Therefore, it maintains good cash flow and can make strategic adjustments more flexibly.
Boss Bu judges that the price has hit bottom
PTA futures rose sharply on Monday. This was based on the fact that the US President’s trip to the Middle East did not reach an agreement to increase production. International oil prices dropped from 95 span>The U.S. dollar began to rebound sharply. At the same time, polyester filament prices on Monday tended to be stable, with no obvious across-the-board surges. Polyester filament prices in some polyester factories even fell.
Therefore, Boss Bu judges that crude oil prices should rebound next, and this time the price of polyester yarn has hit the bottom, and it may not be as low as it is now in the future.
Therefore, weaving companies have developed a mentality of “you will earn when you buy it”. After some people showed this mentality, more textile people began to follow suit, and eventually the phenomenon of “panic buying” occurred.
Polyester factories significantly reduce production
This time, some polyester factories have short-sold their stocks. In addition to the high enthusiasm of downstream weaving companies for purchasing, the more important reason is that polyester factories are currently limiting production.
Due to the difficulty of weaving companies in receiving orders, gray fabric inventories are getting higher and higher, and financial pressure is increasing. The only way to maintain gray fabric inventories is to reduce the operating rate of looms, so as not to fall into the situation of selling goods. As the operating rate of weaving enterprises has decreased, the demand for polyester filament has naturally decreased, so the inventory pressure on polyester factories has increased.
As a result, polyester factories have been forced to start reducing production. Coupled with the shortage of electricity due to high temperatures this month, the operating rate of polyester factories has further declined.
The low polyester production rate has prevented a large amount of inventory from being added to the low polyester production and sales for a long time. Therefore, this time when downstream purchases were made, some polyester factories did not even have enough yarn to sell.
There will be less room for polyester price cuts in the future
It is certainly a good thing for weaving companies to buy low-priced yarn. Although the profits of polyester factories have been compressed, they have also cleared a lot of inventory, and there is no sales pressure in a short period of time.
Polyester factories that have lost their inventory pressure may become more powerful in the future price game, and may once again have the same situation of “I will go up when others are going up, and I will not go down when others are going down”.
But no matter what, every excessive purchase is an overdraft of the future market. This year’s economic environment has determined that terminal demand will inevitably shrink, and everyone is struggling to survive.
Polyester factories and weaving companies are interdependent, and neither can survive independently of the other. Therefore, we hope that the upstream and downstream sectors of the industrial chain can maintain their competitiveness in the future.Let’s build a harmonious and win-win relationship and work together to get through the difficult days ahead.
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