During the Dragon Boat Festival holiday, crude oil surged again, exceeding 120, with a cumulative increase of more than 7 US dollars per barrel.
At the same time, on the PX side, the tight supply pattern continued, rising sharply to US$1,368/ton.
PTA spot market prices have risen sharply, with most manufacturers increasing by more than 100 yuan/ton.
In the afternoon of the 6th, polyester factories in Jiangsu and Zhejiang successively issued price increase notices:
The price of polyester filament from a major factory in Jiangsu was raised by RMB 100 in the afternoon;
Hangzhou No. 1 polyester filament yarn price will be raised by 50-200 in the afternoon;
The price of polyester filament from Zhejiang No. 1 factory was raised by RMB 100;
Polyester filament prices from another factory in Jiangsu were raised by 100 in the afternoon;
Since May 1, polyester filament prices have increased by more than 8%. Specifically, let’s look at POY150D rising from 7850 yuan/ton to 8770 yuan/ton, an increase of 11.72%; DTY150D rising from 9300 yuan/ton to 10100 yuan/ton, an increase of 8.60%; FDY150D rising from 8530 yuan/ton to 9250 Yuan/ton, an increase of 8.44%.
Gray cloth prices finally rise
During the Dragon Boat Festival holiday, major polyester factories in Jiangsu and Zhejiang raised polyester yarn prices by 100 yuan/ton. On the 6th, polyester manufacturers rose again by 100 yuan/ton. Since June, it has risen three times in a row. With such a high frequency, downstream weaving companies have reached their limit! Finally, the manufacturer issued a cry from the bottom of his heart: the discount on gray fabric prices has been cancelled, and prices have begun to increase!
At the same time, due to the continuous rise in polyester filament prices, some weaving manufacturers have also continued to increase the prices of gray fabrics. Although each increase is small, mostly in the range of 0.01-0.05 yuan/meter, the increase is also increasing after multiple increases. Especially for some high-volume manufacturers, raising the price of gray fabrics is equivalent to getting rid of losses, but it may still be some distance away from profitability.
Stimulated by factors such as improving demand, raw materials may continue to rise.
Although in June, the market has begun to weaken compared with May, and has entered the traditional off-season, but under the influence of the surge in upstream crude oil, PX, PTA, etc., the price of polyester filament has also continued to rise, and the cost pressure on gray fabrics can be Said to have reached the limit. Stimulated by positive factors such as improving demand and tight supply, upstream raw materials may find it difficult to decline in the short term, and may even see the dawn of a rebound.
In terms of the epidemic, domestic epidemic prevention and control has achieved results, and Shanghai has been liberalized; the epidemic in Asia is also easing, and coupled with the summer travel peak in the United States, the entire international market may usher in a major explosive rebound in consumption. Boosted by demand, orders for autumn and winter fabrics and knitted fabrics in the weaving market began to fluctuate. For example, nylon, Taslon, four-way elastic, peach skin, etc. are becoming popular. Some woven fabric trading companies also said that customers have recently placed many orders for knitted fabrics and have ideas for developing knitted fabrics.
Gray fabric prices have reached a five-year low and it’s time to rebound
The price of polyester filament has been rising since the beginning of May, but it took a month for gray fabrics to follow suit. The most important reason is that most of the gray fabrics sold recently are from March to April or even earlier. The cost of this part of gray fabrics It was not as high as it is now, and manufacturers are eager to cash out, so they sell at a loss. However, after about two months of destocking, the current inventory is basically produced from high-priced raw materials in the past month. If it is sold at the original price, the loss will increase, and the manufacturer’s affordability is limited. There is no doubt that the final result will be an increase in gray fabric prices.
According to data monitoring from Silkdu.com, the current price of gray fabrics has been at a low level in the past five years, as can be seen from the figure below. At the same time, the profits of many gray fabrics are close to the low in the past five years. The price of polyester filament is approaching the high level in the past five years. Under this contradiction, weaving companies began to resist!
It is often said that “raising prices without demand is a hooliganism”, but in today’s situation, even if there is no demand support, the cost pressure has reached the bottom line of manufacturers. If the price of polyester filament continues to “fever”, the gray fabric market will eventually usher in a comprehensive price increase. of. Perhaps the low prices of the past will never return. Recently, manufacturers have started to increase the price of gray fabrics continuously. While polyester filament has not risen sharply, companies with orders in hand should place orders as soon as possible!
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