On April 7, according to NBC news, the United States launched about 60 Tomahawk missiles at a large airport in Syria, targeting hangars and aircraft. At least 70 people were killed. in response to the poison gas attack in Syria.
Previously, in response to the suspected chemical weapons attack in Syria on Tuesday, the Trump administration hinted that it may launch military operations against Syria soon, and the action may be taken as soon as Thursday evening local time in the United States.
Crude oil soared, and global markets faced violent fluctuations!
As soon as the news came out, the global market caused violent fluctuations, and the prices of safe-haven assets rose rapidly. Crude oil also reacted significantly. As of 4 p.m. on the 7th, the price of Brent crude oil futures in London rose by about 1.4%, reaching an intraday high of $56.08 per barrel; U.S. West Texas Intermediate (WTI) crude oil futures also climbed by about $56.08 per barrel. A barrel of $1, an increase of about 1.6%, reaching an intraday high of $52.94 a barrel.
This is the highest level for both benchmarks since early March. Prior to this, international oil prices had risen for three consecutive trading days. Institutional analysts believe that due to high U.S. crude oil inventories, oil prices may have downward pressure. However, after the United States launched an attack on Syria, the market was shaken by a large number of transactions, and international oil prices rose sharply.
One wave after another, polyester factories are taking advantage of the “east wind” to increase prices!
Affected by the recent continued rise in crude oil, many polyester factories have begun to tentatively increase prices recently. The price increase for some specifications is around 100-150 yuan/ton, and production and sales have also rebounded significantly. This emergency has once again caused oil prices to skyrocket, further accelerating the rise in polyester raw materials.
It is reported that the mainstream quotations of polyester factories today (April 7) are still mainly rising steadily. For example, some FDY manufacturers in Xiaoshao have increased by 50 yuan/ton; Xinmin has increased by 50-100 yuan/ton; some FDY varieties in Jiabao have increased. 50 yuan/ton; Wushang Youguang FDY generally increased by 50-100 yuan/ton, and some FDY coarse denier increased by 50 yuan/ton; some varieties of Rongsheng DTY and FDY increased; Southeast New Materials POY generally increased by 50 yuan/ton…
As of 4 p.m., with downstream enthusiasm for replenishment maintained, mainstream polyester factories were shipping smoothly, and the average market production and sales were concentrated at 150%-200%.
How long will this wind in the polyester market last?
Regarding the current hot market, polyester filament salesmen shouted in the circle of friends: The price will increase, so hurry up and stock up! So how long can this turbulent market last? Let’s analyze it from the fundamentals:
1. Polyester raw materials are “spring breeze blowing”
International crude oil has continued to rebound recently; South Korea’s Ssangyong’s 1 million-ton PX unit was shut down for maintenance for 40-45 days on April 1, which led to an increase in PX prices; while Yishenghua’s 3.75 million-ton PTA unit was shut down for maintenance. In April, Hengli Petrochemical and Yishang Petrochemical Chemical and other equipment are about to be overhauled, and the PTA spot market has also experienced a rebound in stress. Under the fermentation of various factors, the industry chain has finally been looking forward to this gust of wind.
3. Downstream weaving manufacturers buy raw materials and “take advantage of the situation”
The sentiment of buying up rather than buying down has always existed in the weaving market. In addition, a strange phenomenon occurred during the last round of sharp rise. When the price of raw materials continued to rise and the cloth was cheap and the profits were meager, some weaving companies stocked up on raw materials through pre-judgment. Reselling goods has created a profitable trade shortcut. Now downstream weavers and traders are trying to buy at low prices, but has the market seen an increase in demand compared with the previous period? It is still unknown.
4. It will take time for polyester factories to destock
After the rapid decline of PTA and MEG in the early stage, the profits of polyester factories have improved significantly. As a result of the substantial increase in profits, polyester factories are operating at full capacity. However, the industrial chain has not been well conducted, resulting in slow sales in the polyester market and inventory accumulation to around 16-20 days. At present, polyester factories have been operating at a high level of more than 80%. According to data monitoring from China Silk City Network, even if production and sales frequently exceed 100, due to the large base, it will still take time to destock.
To sum up, the author predicts that domestic polyester raw materials may be boosted by crude oil, which will inevitably cause PX prices to rise in the short term, and PTA prices will also be boosted. Overall, while the fundamentals of polyester have improved recently, there is another “east wind” of emergencies. It is expected that the market for polyester raw materials will improve further!
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