It fell!
PTA fell again!
Polyester filament also fell!
As of 15:00 on November 9, the closing price of the main 1901 contract of PTA futures was 6490 points, down 86 points or 1.31% from the previous trading day.
At the end of August, PTA began to fall from a high of more than 9,000 yuan. After entering October, the price of polyester raw materials The value chain has begun to collapse. Whether it is PTA, PX, ethylene glycol, or polyester filament, they have all begun a downward process. In just over two months, PTA spot prices have dropped by 2,960 yuan/ton, PTA futures have dropped by 1,266 points, PX has dropped by 218 US dollars, ethylene glycol has dropped by 1,750 yuan/ton, and polyester filament has dropped by nearly 3,000 yuan. /Ton.
While raw materials are falling, production and sales are also bleak. After October, PTA’s social inventory has been rising, from 700,000 tons in early September to 900,000-1 million tons.
At the same time, polyester manufacturers are also having a hard time, with production and sales basically maintaining at 50-70%. Inventories are also accumulating day by day.
If you use one word to summarize the polyester market since September, it would be “down.”
But who can blame this? How miserable the polyester market is now, how crazy the PTA was back then. Below are some screenshots of Moments that I found.
From these screenshots , we can see that at the beginning, the price of PTA exceeded 6,000 to 7,000, and the downstream weaving market began to sigh. Then it was discovered that the market was getting more and more crazy. In the end, the pre-quotation price was tens of thousands, and there was only ridicule and sighing.
The author started writing articles when PTA broke 6,000, lamenting that the raw material market is crazy? Finally, it exceeded 9,000. I can only say that I am still too young. I am not the craziest, only crazier.
PTA’s performance is like this, and polyester filament is not far behind. It goes up by one, two, two, or three hundred every day. There are days when PTA goes crazy to the daily limit, and polyester filament rises in the morning and ends in the afternoon. Also make up for the increase. The old rule, show pictures.
But for the downstream weaving market, the raw materials are there. If you don’t buy them today, the polyester price will be high tomorrow. It will rise visibly to the naked eye. If you don’t want to stop production, are there any other options besides buying raw materials with tears? The price of raw materials has increased, and downstream companies can only increase prices at the risk of losing customers. If you don’t increase the price, you will lose money. What can Boss Bu do? It’s still the same, showing pictures.
In fact, prices can increase It’s quite happy. After all, it shows that there are still customers who can accept the price increase. What’s even worse is the company that can’t increase the price. Then there are only two paths before them, either to lose money or to stop production.
Hurt downstream, hurt yourself
Raw material explosionWhen prices rise, downstream companies cannot stop production in order to stock up for the second half of the year, and can only buy raw materials with tears in their eyes. However, with the crazy rise in raw material prices, the downstream industry is gradually unable to support it. The end consumer market does not want to buy high-priced raw materials. Not only the cloth in the warehouse cannot be sold, but the inventory is increasing. Anyway, we can’t sell the cloth after weaving it, and the raw materials are still so expensive, so we can only buy less raw materials.
At this time, when the downstream begins not to buy it, the high-priced raw materials become very embarrassing. Coupled with the impact of factors such as the plunge in international crude oil, the polyester market has become the “tragic picture” it is now. The reason is that the raw materials hurt the downstream and ultimately hurt ourselves! </p
