At the just-concluded G20 Buenos Aires summit, the heads of state of China and the United States reached a “ceasefire agreement” on the trade war, and Russia and Saudi Arabia, two major oil-producing countries, reported production cuts. Agreement, everything seems to be moving in the right direction.
The polyester industry chain is improving across the board this week.
In terms of crude oil, first Saudi Arabia and Russia announced production cuts at the G20, and then Canada’s major oil-producing province, Alberta, recently stated that it would cut daily production by 235,000 barrels. Boosted by these good news, international oil prices have risen for several consecutive days.
As of the close on December 4, U.S. oil closed at US$53.25 per barrel, and Brent oil closed at US$62.08 per barrel, an increase from last week.
PTA, driven by the rise in crude oil, in the first three days of this week, PTA showed “three consecutive As the market closed on December 5, PTA futures began to surge.
As of the close of trading on December 5, the PTA futures 1901 contract finally closed at 6486 points, an increase of 312 points or 5.05% from the previous trading day.
In terms of polyester filament, on the first day of this week, polyester filament broke out a “big news” “. On December 3, the production and sales of polyester manufacturers changed from the previous decline and reached a high of 400%. Some polyester manufacturers even began to close their stocks and hesitate to sell.
In the context of high production and sales of polyester, the price of polyester filament has also risen steadily, with an increase of 50-100 yuan/day, which is not large. However, from the perspective of production and sales, downstream Still buying it for now. Amid the surge in PTA, the price of polyester and polyester continues to rise in the short term.
Although affected by the “G20 effect”, the polyester industry chain seems to have passed the decline some time ago and has begun to recover. However, the editor frowned and found that things were not the same. Simple.
Behind the prosperity of the entire industry chain, there are still many hidden worries, which require textile workers to be vigilant at all times .
Qatar “withdraws”, oil price trends remain a mystery
Qatar Energy Minister Saad said in Doha on December 3 that Qatar will Withdrew from the Organization of the Petroleum Exporting Countries (OPEC) in January. As an important oil-producing country, Qatar’s “withdrawal” will undoubtedly have a huge impact on the trend of international oil prices.
The editor analyzes that the general reason for this incident is that international oil prices have fluctuated too much due to political factors. Qatar, as an important oil-producing country, is unable to make its own voice to stabilize oil prices. The interests of China cannot be guaranteed, which violates the original intention of participating in “OPEC” at that time.
Of course, the editor’s level is limited, and I cannot speculate on the final result of this matter. The only thing that is certain is that after this news is released, it will definitely be made a fuss by some national institutions. What’s more, it would be great fun if other oil-producing countries followed Qatar’s example and “withdrew” from the group.
In short, after Qatar announced its “withdrawal”, the oil price trend that had begun to become clear became confusing again. As a downstream industry, the polyester industry chain will inevitably be affected.
“Christmas season” is over, how much can orders increase?
On the evening of December 1, local time in the United States, the heads of state of China and the United States met in Buenos Aires, Argentina. After the meeting, the relevant person in charge of the Chinese economic and trade team stated that the two heads of state discussed Sino-US economic and trade issues and reached a consensus, which put the brakes on Sino-US trade friction.
For textile people, this is definitely good news. Many customers who are waiting can also place orders with confidence. But the editor also wants to say that its boost to the downstream weaving market may not be as big as imagined.
First of all, the time for reaching an agreement is already the evening of December 1, local time in the United States. If the textile people know the news and contact the customers before placing orders, they will basically not be able to catch up with the upcoming “Christmas” Season”, such a huge wave of demand was missed.
Secondly, what China and the United States reached this time can only be regarded as a “ceasefire agreement”. The final result It also depends on how the two sides negotiate in the next four months. If the negotiations do not go smoothly, what should come will eventually come, so the wait-and-see mood of foreign trade companies cannot be completely dispelled.
Finally, and most importantly, in the Sino-US tradeWhen frictions between the two countries began, a large number of orders would inevitably shift from China to Southeast Asian countries. Although the current infrastructure construction and supporting industries in Southeast Asian countries cannot be compared with those in China, it is undeniable that they are also growing rapidly. Therefore, even if China and the United States reach an agreement, it will not be able to change the general trend of international orders gradually flowing from China to Southeast Asian countries.
The RMB rose a thousand points in two days, which is bad for foreign trade in the short term
In Thanks to the joint efforts of many parties, the RMB exchange rate has rebounded sharply in the past two days, with an astonishing increase, even setting a new record for the highest increase since the exchange rate reform in 2005. On December 3, the offshore RMB surged by 556 points, and then rose by another 258 points on the 4th, regaining eight levels in a row, with an increase of more than 1.4%.
The increase in the RMB exchange rate is a good sign of economic fundamentals and will be beneficial to the economy in the long run; however In the short term, if the RMB exchange rate is high, and the quotation remains unchanged, the final amount of money that can be obtained will be less, which is definitely a negative for textile foreign trade companies.
Editor’s note: Although after the G20 summit, a lot of good news came to give the polyester industry chain a “booster”, and downstream demand seems to be improving, but as time goes by With Qatar “withdrawing” and the U.S. stock market plummeting, everything has become confusing again. What will be the trend of oil prices in the future? How long can the polyester industry chain rise this time? Can the Sino-US trade “truce” really help the downstream weaving industry? Everything will take time to prove. </p
