The eighth day of the Lunar New Year is the day when the textile market opens after the new year. The editor is here to wish all the bosses a good start and a lot of money! The domestic consumer market during the Spring Festival holiday can be described as hot. Today (28th) is the first day of work after the holiday. The latest value-added tax invoice data from the State Administration of Taxation shows that during this year’s Spring Festival holiday, the sales revenue of consumer-related industries across the country increased by 12.2% compared with last year’s Spring Festival holiday. It can be seen from the consumption level during this year’s Spring Festival that starting from this year, residents are beginning to dare to consume, which is the best news for the market.
The biggest reason for the lack of market orders last year was the lack of residents’ spending power, so the market will start to improve next year. For polyester yarn, it means that the demand side is guaranteed, and because of optimism about the future market, While the market has not fully started yet, polyester yarn has entered the upward channel, and this year’s “good start” has arrived!
The market has just begun, and most workers have not yet returned to their jobs, but raw materials have already begun to rise. When a large number of weaving companies get out of the holiday atmosphere and resume operations and the loom operating rate begins to rise, the prices of raw materials will rise again. What kind of changes?
PX rises, cost support
While everyone was on holiday, the polyester end was unwilling to be left alone and was still tinkering with things. Although the international oil prices went up and down during the Spring Festival holiday, PX followed the rise due to the violent rise in the crude oil end two years ago, and the PX end The upward trend continued during the holidays, with the price quoted at US$1,064/ton on January 27, and continued to rise at US$1,076/ton on January 28, an increase of US$35/ton from the previous year.
And polyester yarn has always followed its big brothers. No matter if there are rumors of rising crude oil, PX, PTA or MEG, polyester yarn will take action. Therefore, the strong trend of PX during the holidays will undoubtedly give polyester yarn an upward trend. The road has been cleared, and since production capacity is already low during the Spring Festival, polyester factories will naturally not miss the opportunity to increase prices.
The rise on the first working day must not only be driven by rising costs. Polyester factories must also be full of confidence in this year’s market.
Relaxation of controls and growing demand
With the relaxation of control at the end of last year, there are obvious signs of recovery in order volume. The easing of public health incidents also means that the economy will officially be on track in the future, and economic recovery is just around the corner. Therefore, the demand for raw materials in the textile market is now higher than last year. After the holiday, the start-up of looms in major production bases in Jiangsu and Zhejiang has partially increased.
However, since most workers will not be fully available until the fifteenth day of the first lunar month, most manufacturers expect to resume normal load after the fifteenth day of the first lunar month. Due to the early Spring Festival last year, some orders were postponed until after the new year. Weaving companies need to seize the time and grasp the delivery nodes. When workers return to work next week, the weaving operation rate will increase significantly. The main task of textile workers now is to get rid of all the inventory accumulated last year.
It is therefore expected that in the short term (February-March) polyester prices will continue to advance on the upward channel, and March-April will be the traditional peak season of the textile market, and the market should have raised product prices. Therefore, the overall market situation in the first half of this year will be much better than in previous years. Due to the deserted market conditions in the past two years, most weaving companies have not prepared enough raw materials, and the demand for raw materials will be higher than in previous years. Therefore, although polyester prices are already at a high level, The overall situation will still be warm.
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