It has only been three days since the start of the new year in the textile market, but the polyester market has already had two price adjustments. On February 7, before the market opened, polyester prices generally rose by 100-200 yuan/ton. Then in February It rose again by 50-100 yuan/ton on the 8th. The fluctuation of raw material prices has always touched the heartstrings of textile people. When a large number of weaving companies get out of the holiday atmosphere and resume operations and the loom operating rate begins to rise, what will happen to raw material prices? What about changes?
Costs loosened, PTA fell for two consecutive days
During the Spring Festival, with the strong rise in international crude oil prices, PTA received strong support. It can be seen that after the Spring Festival holiday, the price of PTA increased by 305 yuan/ton, an increase of 5.6%. On February 8, the textile market opened the new year. After that, as crude oil fell, PTA prices fell for two consecutive days.
Mainly because PTA has overcapacity in the upstream and no demand in the downstream. It basically followed the “big brother” crude oil. International crude oil rose to 93 US dollars per barrel and returned to a weak and volatile state. As the younger brother, it followed the pace and continued to fall. Two days. The decline of PTA after the beginning of the year reflects the market’s concerns about the textile market this year.
The downstream industry has not yet fully recovered, and polyester production and sales are only 10-40%
In the past two days, polyester production and sales have only remained at about 10% to 40%, and price increases have not been able to stimulate downstream consumption. According to market visits, it was found that many manufacturers had stocked up on raw materials as early as a year ago. The inventory of raw materials is sufficient and the purchase demand is not high. The raw materials in the hands of these companies are enough to complete the existing orders in their hands.
On the other hand, in the current textile market, workers have not yet arrived, and weaving companies have not fully resumed work. No one will buy silk at this time to stock up. From this point of view, the current polyester production and sales are hovering at a low level. It’s normal. The real market will not be known until after the Lantern Festival and when workers are successfully on duty.
The price of gray fabrics is passive, closely following the market trends of raw materials
So for textile companies, what does the rise in raw materials bring? There are two situations. One is that the order mentioned above was received a year ago, and the raw materials were prepared in advance. The increase in polyester prices will naturally not have a great impact on them; but at the same time, some textile companies are due to funds. Or considering the ups and downs of polyester prices and not having a lot of raw material inventory, a textile boss said: “The price of gray fabrics has risen with the raw materials. Now the price of gray fabrics is very unstable, ups and downs, mainly following the cost. In the future, we will still follow the price.” Mainly need to purchase.” For them, facing the increase in polyester prices, they can only guarantee their profits by following the increase.
But sometimes, the price increase of gray fabrics cannot smooth out the cost changes caused by the increase in raw materials. Although polyester yarn has risen sharply, like some more conventional fabric trades, the market competition is fierce, and the bargaining power itself is not very strong. Now the price of purchasing goods has become more expensive, and the quotation cannot increase much, so the profits will only become more and more. The lower it gets.
It can be seen that if raw materials rise, downstream will suffer. If raw materials fall, downstream will still suffer. Textile bosses are always passive in the face of poor terminal demand. They have just increased prices, and raw material prices have a downward trend. Fortunately, in the short term, As the cost side begins to maintain stability again, the market prices of raw materials will mainly remain stable.
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