The over-million-ton polyester plant will be put into operation in June! The tide of production expansion has begun. Can the polyester filament flowing to the weaving market still be digested?

Since the second quarter of this year, as the textile industry resumes work and production, the operating rate of polyester factories has continued to increase, and the process of putting new production capacity into production has also continued to accelerate. So far, 2.25 million tons of new production capacity has been put into operation in 2020, and new polyester plants such as Shenghong and Hengli are yet to be put into operation in June.

In the context of high production, the total start-up of polyester reached a high of 90.9%, even exceeding the same period last year.

What supports the high operation of polyester factories is high profits. As can be seen from the figure below, after April, polyester filament Profits began to fluctuate upward.

But in polyester factories, high production and high startup At the same time, polyester inventory has dropped significantly from this year’s peak. According to the data monitoring of China Silk City Network, from the statistical data of China Silk City Network, the overall inventory of the polyester market is now concentrated at 23-34 days; in terms of specific products, POY inventory is at 7-13 days, and FDY inventory is at 16 days. -around 23 days, while DTY inventory is around 24-35 days.

But we can also see from the polyester inventory chart above that after entering June, polyester factories have started to run out of inventory again, and this is because weaving companies can no longer afford to pay.

The epidemic affects terminals, and Boss Bu’s expectations are pessimistic

Real-time statistics released by Johns Hopkins University in the United States show that as of At around 6:30 on June 18, Beijing time, there were a total of 8,317,055 confirmed cases of COVID-19 worldwide, and a total of 446,257 deaths.

The global epidemic continues to spread, and the anti-epidemic situation in many countries is not optimistic. Some netizens in the United States revealed that they were infected with the new crown last year, and the earliest was in August last year; the number of confirmed cluster infections in Berlin, Germany, rose to 70; French medical staff held demonstrations in many places; Istanbul will carry out “new normal” inspections; there are still a large number of Businesses do not comply with epidemic prevention regulations.

At the same time, a cluster of epidemics has reappeared in Beijing, with more than 100 new confirmed cases in several days. On June 16, the emergency response level for public health emergencies in Beijing was raised from Level 3 to Level 2.

June is the traditional off-season for the textile industry, and when the traditional off-season encounters constant As the epidemic spread, terminal demand began to plummet.

In terms of polyester production and sales, after June, except for two production and sales peaks at the beginning of the month due to rising crude oil prices, polyester production and sales have remained sluggish since then.

In terms of gray fabric inventory, according to data monitoring from China Silk City Network, the average gray fabric inventory of weaving enterprises in Jiangsu and Zhejiang has risen to around 43 days, and as the off-season continues, gray fabric inventory will continue to rise in the future.

In terms of the operating rate of looms, there has also been a significant decline. According to data monitoring from China Silk City Network, the average operating rate of water-jet looms in Jiangsu and Zhejiang has dropped to around 70%.

Under such circumstances, Boss Bu is very excited about the next step The market situation cannot help but have some pessimistic attitude.

It is a big clothing brand, but due to the impact of the epidemic this year, the number of foreign trade orders has plummeted. Overall, the transaction volume in the first half of this year is less than half of the same period in previous years. The current epidemic is still not under control, so it is expected that the real improvement of the market may not occur until next year.

Mr. Chen, who mainly produces pongee and polyester taffeta, also said that in the first half of this year, except for April, part of the inventory was lost due to the popularity of the concept of protective fabrics. , except for receiving a few orders when the market improved in early May, most of the time was in the stage of accumulated inventory. At present, the inventory of gray fabrics in the factory has exceeded two months, and now it is starting up.�� has dropped to 60%, and the factory is preparing to have a holiday during the upcoming Dragon Boat Festival to slow down the accumulation of inventory.

Be prepared for a rainy day and seize the opportunity

The market is not good and the demand is poor due to the impact of the epidemic environment. However, textile companies can also take precautions and make some efforts in advance to take advantage of the situation when the market improves in the future. .

Shrink production capacity and preserve strength

When orders did not improve, all the cloth produced by weaving companies became inventory, and cash flow became tight day by day. Under such circumstances, it is a good idea to shrink production capacity and ensure the health of its own cash flow. After all, although everyone knows that the market will get better in the future, for weaving companies, how to survive until then is the top priority now.

Not only do we need to be bigger, but we should also be more refined

Some time ago, when the editor went to interview a company that makes T8 fabrics, the person in charge of their company said that the market has been so bad this year, but their business has changed. alright. The reason is not complicated to put it bluntly. Because there are few orders, customers now pay close attention to every order. The quality of their products has advantages, so customers now place orders at their homes.

Therefore, although the epidemic has caused a big blow to the market, it is also an opportunity for some powerful companies to transform from their original “Being bigger” is slowly turning to “becoming better”.

Strengthen “on the cloud”

“The aroma of wine is also afraid of the deep alleys.” In the current social environment, companies cannot just immerse themselves in making good products. How to make their products widely known is also a matter of textile. A required course for enterprises.

In previous years, participating in exhibitions was a very good way. The Canton Fair, Shanghai Exhibition, Shenzhen Exhibition, and Shengze Exhibition would have many professional visitors. Choose your favorite product.

Under the influence of the epidemic, physical exhibitions lack the conditions to hold physical exhibitions. Participating in cloud exhibitions and displaying your products “on the cloud” has become a new trend. trend.

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