“This week the temperature in Jiangsu and Zhejiang has dropped dramatically, it’s really freezing!”
“No matter how cold it is, it can’t compare to this “cool” textile market. !”
“If this continues, you will even have to queue up to “drink” the northwest wind!”
In recent times, the polyester market has really been in such a state, how can one describe it as “miserable”?
As the main force of polyester, the “murderous spirit” is already approaching the polyester filament market. The price focus of various mainstream products has not only fallen sharply to the lowest level during the year, but has also hit the highest price in the past three years. Lows. It is reported that the year-on-year decline of mainstream polyester filament products is generally close to 2,000-3,000 yuan/ton, a decline approaching 20%-30%.
The most dismal thing is that the profits of polyester manufacturers are still being squeezed. Amid the unsatisfactory profitability of the entire polyester industry chain, the polyester filament segment has also failed to improve. Profits have been even more difficult in the recent stage, and some products have even suffered losses.
The small bench is ready, start eating the melon seeds, and let the editor take you to “track” it!
The first to bear the brunt is FDY products, the former domineering “king”. The market situation in the first half of the year was relatively stable, but since the second half of the year, it has mostly maintained small profits. Especially in the past month or so, it has been the first to break the downward channel, and it has basically been in a loss situation.
As for DTY, although it has been able to maintain profitability most of the time this year status, but losses may occur if you are not careful. Especially in the recent stage, it has gradually followed the footsteps of FDY and hovered near the loss line, making it difficult to suppress losses.
Among the three major mainstream products, the performance of the POY market in the first half of the year It’s not ideal, but since the second half of the year, the overall performance has turned around. Especially in the past month or so, it has become only a small number of profitable products, but whether it can be supported in the future appears to be very difficult.
We know that the profit fluctuations of polyester filament products are naturally inseparable from their own prices, but more importantly, they are suppressed by market demands from polyester manufacturers and downstream weaving companies!
1. Although the growth rate of polyester production capacity has slowed down, the industry’s operating rate is generally high
Looking at this year, the production capacity of the polyester filament market continues to grow is expanding, but the overall production capacity growth rate has slowed down significantly. According to statistical data, China’s total polyester production from January to October 2019 was 41.426 million tons, a year-on-year increase of 10.0%; from January to October, a total of 14 polyester units with a total production capacity of 3.12 million tons were put into operation or expanded, mainly polyester There are three major sectors: chips, polyester filament and polyester staple fiber, of which polyester filament accounts for nearly three-quarters of the total. Among them, the total new polyester filament production capacity in 2019 was 2.54 million tons, a decrease of nearly 560,000 tons compared with the 3.1 million tons added in 2018. It is also worth noting that the new production capacity in the polyester filament market is mainly concentrated in the hands of the two leading polyester companies, Tongkun Group and Xinfengming, and the products put into production are mainly POY.
However, since this year, the polyester market has another obvious feature. That is, the operating rate of the polyester industry has always remained at a high level. Specifically, after the Spring Festival, the overall operating rate of the polyester market has basically remained between 85% and 95%. Compared with last year, the overall operating rate of the market has improved significantly. This seems to have added some “burden” to the already weak polyester market this year.
2. The performance of the weaving market is quite “sad”, and the transaction volume is gradually weakening
For this year, For the downstream weaving market, it is definitely a “sad” year! Especially since November, althoughThe start-up rate in Zhejiang is still around 80% to 90%, but it must be noted that the fabric market is gradually weakening, the transaction volume of autumn and winter fabric products is gradually weakening, the goods are coming to an end, the market transaction prices are chaotic, and hot products Conspicuously missing.
The confidence in the downstream weaving market is obviously insufficient, with T400, T800 and other products The popularity of the epidemic has begun to decline, and dyeing factories have reduced their warehouse entry. Specifically, the transaction volume of T400 and T800 goods on the market is not as good as in the previous period. Manufacturers mostly execute early orders, and subsequent orders are not very sustainable. The prices of conventional products such as polyester taffeta have fallen compared with the previous period. Affected by the warm winter, manufacturers have to reduce profits in order to ship goods. The space is compressed to a very low level; other items such as home textile fabrics are generally sold as a whole, and the product performance is mediocre. The manufacturer said that customers’ enthusiasm for placing orders has been greatly reduced. This will inevitably have a certain impact on the recent market demand for polyester filament.
At present, the downstream weaving market has insufficient stamina and the trading atmosphere is poor. In addition, the pressure of high inventory of gray fabrics has not been relieved, and manufacturers have a strong intention to destock. This has led to frequent low-price operations in the market and chaotic transactions. Many textile manufacturers with a lack of orders have begun to prepare to collect payment and celebrate the New Year in advance; while polyester manufacturers themselves still maintain a high operating status, and it is expected that the “pressure” on the polyester filament market may further increase in the future. </p
