In the past two trading days, international crude oil has suffered a large decline. Yesterday, Brent and WTI crude oil fell by as much as 2% during the day, then recovered the decline and turned higher, and then fell again. As of the close, the WTI crude oil futures June contract fell by US$3.33/barrel, closing at US$99.76/barrel, a decrease of 3.23%; the Brent crude oil futures July contract fell by US$3.48/barrel, closing at US$102.46/barrel, a decrease of 3.28%.
Polyester prices begin to fall
International oil prices both plummeted, and polyester cost-end support was insufficient. Polyester filament ended its five consecutive rises. On May 10, the market price of polyester yarn in Jiangsu and Zhejiang began to stabilize. On the 11th, most manufacturers’ prices remained stable, but a small number of manufacturers have lowered their prices.
Another factory in Hangzhou lowered the price of polyester DTY by 200 today;
A major major manufacturer in Shengze lowered the price of polyester yarn by more than RMB 100 today;
After May Day, driven by the crazy rise in raw material prices, downstream gray fabric shipments also experienced a long-lost loosening. I thought that the price of gray cloth would also rise with the price of raw materials, but before the price of gray cloth increased, the price of raw materials had already dropped. The market situation came too suddenly, especially those traders who had just stocked up in large quantities.
The decline in polyester prices is actually reasonable. Although the polyester factory issued a notice to reduce production and protect prices, crude oil suddenly fell sharply and lost cost support. In addition, under the current situation of demand stalemate, the contradiction between supply and demand has gradually expanded recently. The post-holiday production and sales of mainstream manufacturers have continued to be poor. The downstream is more resistant to high-priced supply of goods, and transactions are rare. Therefore, under the influence of cost pressure and factory inventory pressure, polyester filament yarn is expected to remain weak in the short term.
It is difficult for gray fabric prices to rise
As for gray cloth, its price changes often lag behind changes in raw material prices. Although the downstream weaving, printing and dyeing market has improved recently, it can be said to be a drop in the bucket. It can be said that the profits of the entire textile industry chain in the near future are at the raw material end, while the weaving end is already in a state of no orders and no profits. In this case, customers are still lowering prices. Even though the price of raw materials soared in the past few days, customers continued to lower prices when placing orders, especially for large-volume orders. Therefore, the final transaction price of gray fabrics actually fell.
According to a gray fabric trader, four-sided stretch gray fabrics are still on sale recently. The raw materials are produced at higher prices in the early stage. However, due to the gradual increase in inventory, the goods are finally loose, so I want to take this opportunity to stock up, so I have to Give customers cash discounts, most of which are 0.01-0.02 yuan/meter cheaper.
Therefore, it is said that “price increases without demand are just hooliganism”! If the downstream weaving end receives poor orders, it will be difficult for polyester filament and other chemical fiber raw materials to increase in price. Without strong support for the increase, the price will most likely be a “one-day trip”. Although there are signs of improvement in the current weaving market, as the weather is hot and the traditional off-season is approaching, the market is more likely to weaken again. At the same time, the inventory of gray fabrics in the entire market is still at a high level. According to data monitoring from Silkdu.com, the inventory of gray fabrics in Shengze area currently stands at 35.8 days, an increase of 3 days from the beginning of the year. As the traditional off-season approaches, manufacturers are more eager to destock, and many manufacturers may sell goods at low prices.
The epidemic has recurred and the general environment has affected raw material prices. The impact of the epidemic on textiles and clothing has not dissipated. In April, the epidemic situation at home and abroad is out of control and may have another impact on the world. Whether it is the economic environment or the demand for textiles and clothing, there will be many impacts. Influence. Under the circumstances of “domestic and foreign troubles”, no matter how much the price of raw materials rises, gray fabrics may be stuck in the quagmire of low prices for a long time.
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