Affected by market expectations that the OPEC meeting on Thursday will make a decision to extend the production reduction agreement for at least six months, crude oil futures prices have risen for five consecutive trading days, and on Tuesday hit the highest closing price in more than a month. . Taking advantage of the momentum, ethylene glycol is also moving forward like a “cheating”: electronic trading hit the daily limit for multiple consecutive trading days last week.
Out of the mentality of buying up and not down, the long-lost enthusiasm for stocking was aroused. The inventory of polyester manufacturers was suddenly reduced a lot, and some manufacturers’ sales were as high as 400% or more. This is undoubtedly another great opportunity for polyester filament, which has fallen into a trough, to “turn around”.
Under the stimulation of many favorable conditions, polyester filament naturally joined in the fun. POY and FDY were all red. The production and sales of the polyester filament market have exploded, with the average production and sales exceeding 200%.
Since last Monday, the quotations of mainstream manufacturers of semi-glossy FDY150D96F have increased by around 550; the quotations of semi-glossy POY300D96F by mainstream manufacturers in Xiaoshan have increased by around 300.
Has this price increase in the polyester market been successfully transmitted to the downstream weaving market?
We learned from a merchant in Shengze who specializes in tangled hemp and imitation silk: the average prices of 75D tangled hemp and CEY high-elasticity products have increased by 10% on the original basis, and they are basically hard to find. After placing an order, the average price It takes 4-5 days to get the goods, and they are all in small quantities. Even so, orders are still coming.
According to a manufacturer in Lili, they used to make finished products, but now they only sell blanks. According to reports, they have a lot of debts in the finished product business, and the raw materials for dyeing are all paid in cash. The cost pressure is high and the profit is small. However, due to environmental protection, surrounding small factories have been closed recently, resulting in polyester taffeta becoming a best-selling product. Customers lined up with cash to grab the goods. Basically, the gray fabrics were sold out as soon as they were machine-made. Why take the risk when there is so much door-to-door business? It’s risky to do a business where you can’t make money!
In addition, a manufacturer of gall cloth told the editor that 290T and 310T specifications of gall cloth have been relatively popular recently. Raw materials have increased, production orders are busy, and the price of gall cloth has also increased, with an average increase of about 0.1-0.2 yuan. The editor did some calculations and found that gallbladder is only 1-2 yuan, with an average increase of 0.1-0.2 yuan, or an increase of 5%-10%.
Regarding the price increase of polyester filament, some cloth bosses joked:
The indirect loss was 11,000 yuan in 3 days, and no one else could. The price increase of polyester filament is coming fiercely!
In the face of rising raw material prices, what is the fabric profit now?
Even if the price of raw materials increases, for fabrics, the increase will not be that big. It is naturally easy for some products that are in short supply to increase prices. However, for more conventional products, if the price of raw materials increases, the price of fabrics will not increase much. Price increases will only lead to compression of fabric profits. According to monitoring data from Silkdu.com, the profits of some conventional fabrics have declined recently.
During the visit to the market, the editor also confirmed that not all varieties have increased. Because the raw materials fell some time ago, many customers lowered their prices. In order to make business, they can only give in a little. Now that the raw materials have increased, the negotiated prices cannot be reached. If you move, the profits will be even less.
Afterword
Facing the rise of upstream raw materials, some companies in the downstream market are happy and some are worried. Manufacturers that mainly focus on conventional fabrics hold on to prices that cannot rise and compress profits to obtain orders; manufacturers of special fabrics do not dare to increase prices at will. After all, they lack the confidence of raw material manufacturers. They will go up if they say it will go up, and customers will have to accept it. Okay.
Only healthy price increases can better improve the general environment. If prices are increased arbitrarily away from the fundamental track, it is feared that it will suffer more resistance and bitter consequences. After all, achieving harmony and win-win results between upstream and downstream is the long-term solution. Fabric bosses, what do you think of this increase in raw materials? Feel free to leave a message in the comments.
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