On March 22, the price of polyester filament fell sharply:
The price of polyester filament from a DTY factory in Shaoxing was reduced by 200-300 yuan;
The price of polyester filament from a large factory in Tongxiang was reduced by 200 yuan. -450 yuan;
The price of polyester yarn from a FDY factory in Shaoxing was reduced by 200-400 yuan;
The price of polyester yarn from a large factory in Xiaoshan was reduced by 200-400 yuan today;
Polyester long The performance of silk has always been very “hard”. No matter how the upstream crude oil and PTA futures fall, the price of polyester filament can basically remain stable. The cloth bosses have even started to make up a jingle:
When futures rise, I rise, and futures have an impact on me; when futures fall, I do not fall, and I am different from futures. When crude oil rises, so does I. We are of the same origin; when crude oil falls, I do not fall, and cost support is still in stock.
This time polyester filament suddenly “uncharacteristically” began to fall sharply. What is the reason?
Crude oil cannot support
No matter how the epidemic is recovered, the price of crude oil will always have a “ceiling” Yes, not to mention that the epidemic is not completely under control now. Even if it is, crude oil at US$70 per barrel is still not cheap.
Oil prices rose rapidly before, mostly because there was too much hot money in the market and insufficient investment channels, so we had to enter the more stable commodity market and overdraft the economy in advance. Restore the market.
But this rise is driven by capital and does not have obvious downstream support. Therefore, the faster it rises, the harder it will fall.
Continuous poor production and sales
In the past two weeks, the price of polyester filament has not increased, and cloth bosses have stopped buying it. Although raw materials have increased much before, the price of fabric gray cloth cannot rise so much, and traders cannot accept it. This has led to shrinking profits, and the enthusiasm of weaving companies for production has declined, so naturally there is no more motivation for production.
Profits are very high
3 At the beginning of the month, the price of PTA ethylene glycol fell sharply, but the price of polyester filament yarn remained basically stable. As one went down and the other went up, the profit of polyester yarn became very high.
But what’s the use of high profits on paper? If no one buys it, it can only remain on paper. And such high profits also give polyester factories the confidence to reduce prices.
Epidemic
According to the World Health Organization European Office on March 18 According to data released on the same day, new infections of the new coronavirus in Europe have been on the rise for three consecutive weeks, and the number of new deaths is also higher than the same period last year. Affected by this, many countries have adopted measures to re-close cities, which also makes it difficult for the previously envisaged “retaliatory rebound” to come as scheduled.
Is it the beginning? Or the end?
Although there are various reasons, the sharp drop in the price of polyester yarn, which was very “strong” in the past, still makes people a little unprepared. Textile people can’t help but wonder whether this price drop is just the beginning. , or the end?
For weaving enterprises, even if it has dropped a bit, the current raw material prices are still high. As long as downstream traders and fabric merchants do not accept the increased gray fabric prices , then the price of raw materials is unacceptable.
For polyester factories, the high paper profits still leave room for decline in polyester filament. I believe that as long as it can drive the production and sales of polyester filament, polyester factories are not willing to raise some prices. Exclusion.
To sum up, the polyester price reduction on March 22 may be just the beginning. Due to the expectation of decline in the short term, cloth bosses will not suddenly buy in large quantities, but Once the downstream order situation improves, this price reduction momentum will soon be stopped, and perhaps raw material prices will start to rebound again.
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