China Garment Website_China's popular garment and fashion information platform China Garment News Costs and raw materials are rising, kicking off the new year! But how long can this “money rush” situation last?

Costs and raw materials are rising, kicking off the new year! But how long can this “money rush” situation last?



The difficult year 2021 has finally passed. After experiencing the “up, down, down” pattern last year, polyester filament yarn has started the new year in a continuous …

The difficult year 2021 has finally passed. After experiencing the “up, down, down” pattern last year, polyester filament yarn has started the new year in a continuous rising pattern. Textile companies have also reached the end of the year and have gradually entered the last wave of stocking up before the holidays.

Polyester filament continues to rise

Polyester filament has recently begun to rise continuously. The early rise in polyester filament was mostly due to the strong purchasing mentality of the downstream and demand-led. When the downstream market weakened, the high price will naturally no one care about it. Polyester manufacturers can’t help but Carry out substantial price reduction mode.
At present, the increase rate of polyester filament yarn in recent days is generally between 50-150 yuan/ton, with a slight increase. This is because the cost side has changed from a weak operation to a volatile upward trend. When the cost rises, polyester filament yarn is affected by the early price reduction and profit reduction. The impact will inevitably follow the increase, and now most of the market is restocking before the holidays. Although polyester filament manufacturers are more willing to increase, after all, it is the eve of the Spring Festival, and gray fabrics cannot have strong changes. Considering the downstream buying Capacity and its own inventory production and sales can only increase slightly as usual.
As of January 5, 2021, the price of polyester filament FDY 150D is 7,600 yuan/ton, the price of polyester filament DTY 150D is 8,950 yuan/ton, and the price of polyester filament POY 150D is 7,380 yuan/ton. Compared with last month, polyester filament FDY 150D increased by 300 yuan/ton, polyester filament DTY 150D increased by 350 yuan/ton, and polyester filament POY 150D increased by 350 yuan/ton.


Disadvantages and advantages after polyester price increase

1

Although the increase is not as dramatic as last year’s surge, it is still a last resort under the current situation. At present, the downstream market has been in an off-season state. Although the dyeing factory explosion seems to be lively, after all, the Spring Festival is just around the corner. Even if the textile companies have orders, they are only in small quantities and in rush hours. Especially now, some companies have reported that the price of raw materials has fluctuated too much. No more orders.

On the contrary, the prices of PTA and MEG continue to strengthen, and some conventional polyester products have entered a slight loss. Like DTY150D, at this time in December last year, although there was a promotion and price reduction, the profit was at least nearly 180 yuan/ton. But now the profit has entered the loss side. As of January 4, DTY150D’s loss has reached -32 yuan/ton. FDY150D is also at risk of losing money.

The main reason is the crazy price increase on the cost side. Due to pipeline maintenance, Libyan oil production fell by 200,000 barrels per day, which will last for a week. This news brought support to oil prices. In addition, concerns about the impact of the epidemic on demand in foreign markets have eased, and the current international situation is relatively complex. Under the influence of multiple factors, oil prices have been rising. The strengthening of oil prices has driven PTA to continue to rise. Although PTA construction has increased and there is pressure from accumulated storage, there will still be a slight upward trend in the short term.

2

But even though the profits of polyester filament manufacturers are now in a dangerous position, they are still in a state of gradually improving production and sales and making a small profit.

Faced with the rising prices, downstream manufacturers have once again bought into it, causing an increase in the demand for downstream texturing and weaving purchases. Since the last promotion, polyester manufacturers have carried out multiple supplementary increases. In addition to the rigid demand for replenishment, downstream factories did not stock much before the Spring Festival. The production and sales of polyester filament factories improved, with the seven-day average production and sales rate exceeding 100, and the production and sales of some better factories even reached around 300%-400%. But no matter what, polyester manufacturers would like to see some reduction in inventory and increase production and sales before the holidays.


Although this wave of polyester operations is a helpless move, it is also a routine operation. The holiday is coming soon. No matter how the business was before, it is already a thing of the past. The new year will be continued by textile people!

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Author: clsrich

 
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