Since mid-December, the prices of various polyester filament products have experienced a long-awaited rise. Among them, FDY has the largest increase, rising by 400 yuan in one week. Yuan / ton.
But at the same time, polyester production and sales are basically There is no improvement, hovering around 50-80% most of the time. Although there are occasional over-100 performance, it only maintains a state of slightly above 100.
On the one hand, polyester prices have been rising “willfully” On the one hand, polyester production and sales are hovering at a low level. This is not the first time this has happened.
Polyester companies suddenly discovered that the original rule of “buying up and not buying down” no longer worked. Faced with the rising raw material prices, weaving companies have “changed” “witty”, why is this?
Who can withstand the ups and downs of raw materials like this? Live
As the saying goes, you will gain wisdom after every hardship. Normal people will have experience if they suffer a lot, let alone follow them every day. What about Boss Bu, who deals with large sums of money? After all, the raw material price gap of one to two hundred yuan will be magnified to tens of thousands of yuan when reflected on the weaving company.
As for textile people, they have suffered a lot this year due to the price of raw materials.
At the beginning of this year, because polyester inventory was too high, the price of polyester filament fell instead of rising, breaking the forecast that raw material prices would rise after the year. “Unspoken rules”.
Let’s simply imagine that a weaving company “eats hot pot and sings” and happily starts production for the new year. Suddenly, it hears that the price of raw materials has dropped. There is an inventory of raw materials in the warehouse for more than three months. If you carefully calculate that all the work may have been in vain for a month, how does it feel? However, this is just the beginning.
By the middle of the year, the U.S. tariffs began With the addition of taxes, the downturn in the market this year has begun to take shape, but polyester raw materials such as PTA have not shown the current decline and still maintain a high-profit status.
With the successful meeting between the heads of state of China and the United States, and the rapid rise in international oil prices due to geopolitical factors, the price of polyester raw materials has ushered in another wave of rising prices. , but a sharp rise is often followed by a sharp fall.
The sharp rise and fall in raw material prices has seriously destroyed the psychological defense of weaving companies. Companies that bought raw materials at high prices suffered real and huge losses, while those who bought low prices suffered huge losses. Enterprises that sell low-priced raw materials are secretly rejoicing but at the same time have lingering fears. Faced with the ups and downs in the price of polyester raw materials, most weaving companies dare not take action at all. Waiting and watching, buying and using as they go has become the choice of most companies, and this choice has continued to this day.
Purchase raw materials on a whim, touch your pocket No money
In addition to the polyester factory’s failure to speculate on raw materials several times, which caused the weaving company to suffer several painful losses, the actual market situation is not good. The tight capital chain is the underlying reason why weaving companies have “learned to be smart”.
The tight capital chain is mainly reflected in two aspects. On the one hand, the payment is slow, and on the other hand, the inventory of gray fabrics is high.
In terms of repayment, due to the poor market conditions, weaving companies are more cautious in accepting orders and do not dare to take risks to take some risky orders, so most of the cooperation They are all old customers.
Old customers do know the basics and the risk is low, but they can’t help but be slow to get their money back due to personal relationships. After all, we have been doing business for so many years, and we know that the other party is not refusing to pay, but the time is a little later. If it is later, it will only be a little later, but this means that even if the textile company receives an order, the cash flow in hand will be short-term. There is no inner abundance.
Inventory is a bigger problem. According to data monitoring from the China Silk City Network, for most of this year, the gray fabric inventory of weaving companies has been higher than last year’s inventory high point, with the highest reaching nearly 43 days. According to what we know from the market, it has become a normal phenomenon for some large-scale weaving enterprises that produce conventional gray fabrics to have tens of millions of meters of gray fabric inventory.
There is only so much money, so I keep some cash on hand for emergencies. Most of the rest is turned into inventory cloth, so naturally there is no money to buy raw materials.
The market last year was good, and raw materials were sold at sky-high prices. The highest spot price of PTA even exceeded 10,000 yuan/ton. However, there were still cloth bosses footing the bill, forming a situation. A situation of “the more it goes up, the more it goes up, and the more it goes up, the more it goes up”.
This year’s polyester manufacturers are using the same ideas as last year, but this year’s market is completely different from last year’s. Textile companies have not If there is no way to pay the bill, the price of raw materials will naturally not be so confident.
Postscript
In 2019, textile companies suffered a lot of losses and suffered a lot, and finally “learned to be smart” and no longer paid for the upstream hype. The new year is coming, the tariffs imposed by the United States have begun to decrease, and the growth of new water-jet loom production capacity has also slowed down. I believe that the market will be better than this year. However, we hope that weaving companies can continue as they have this year, not being tempted by market hype, and maintaining raw materials at normal prices, so that the entire industry chain can develop in an orderly and reasonable manner.
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