Recently, two things have happened that have a great impact on textile companies. One is the plunge in crude oil prices, and the other is the occurrence of rare high-temperature weather. These two events have simultaneously exacerbated the decline in loom operating rates.
Crude oil fell again 8%! PTAFutures once fell to the limit
JulyMonthDecemberDay,International oil prices fell sharply again, and the global The two major benchmarks for crude oil pricing both fell below 100USD, and dropped as much as 8% .
The drop in international oil prices has had a huge impact on the polyester industry chain.
PTA In terms of futures, PTA futures fell to the limit at midday. Although they rebounded slightly after opening in the afternoon, they quickly fell back.
In terms of polyester filament, the polyester filament market in Jiangsu and Zhejiang generally fell 200-300 yuan/ tons, and the follow-up will continue Possibility of decline.
(This plummeted, the editor’s friend who sells raw materials wanted to hit someone when he heard about it)
Market analysts believe that this oil price plunge is mainly due to two reasons. One is the strengthening of the US dollar. A very popular thing some time ago, the exchange rate of the euro has been lower than the US dollar; the other is due to the expected shrinking demand. , the new crown epidemic has greatly affected the globalized industrial chain, and the world’s overall economy has entered a downturn. From recent news, we can see that the economy of small countries like Sri Lanka has collapsed. Although big countries can survive for a while because of their strong foundation, various contradictions A concentrated outbreak also began.
Under such circumstances, residents’ consumption of non-essential consumer goods will naturally decrease. They used to buy three pieces of clothing a month, but now that their lives are tight, they may only buy one piece to maintain a normal life. Of course, crude oil is more complicated. Under the current circumstances, it is more affected by financial speculation. It may rise back in two days.
Warning! Jiangsu and Zhejiang issue high temperature red warning
Although summers are hot every year, it is rare for the temperature to be as high as this year.
On the morning of July 12, the Jiangsu Meteorological Observatory sounded the alarm for the first time in 5 years. The highest level of high temperature red warning, most areas in southern Jiangsu have experienced temperatures above 39℃,The local temperature in Suzhou is even as high as 43℃. The same is true in Zhejiang, with the highest temperatures in Jiaxing, Hangzhou, Huzhou and other places exceeding 40℃.
High temperature will have two main impacts on textile companies.
First, power shortage. Every summer, the country enters the peak period of electricity consumption, and this year is no exception. According to CCTV Financial Report, 6In the past six months, the State Grid Corporation of China’s operating areas include Henan, Hebei, Gansu, Ningxia, etc.4 The electricity load of two provincial power grids and the northwest power grid hit a record high. When the power is tight, the state first guarantees the electricity consumption of residents, so the production of enterprises will be affected to a certain extent.
Second, it is difficult for enterprises to start operations. In the weaving industry, there are very few companies that have the conditions to install air conditioning in production workshops. If they want to maintain production, workers need to endure the scorching heat. Working under high temperatures for a long time is a huge test for the body and mind. If downstream supply exceeds demand, manufacturers may use high wages, bonuses and other means to maintain production. However, the number of orders is now insufficient, so many companies have chosen to reduce operations, and some companies have even taken holidays directly.
Therefore, high temperature and falling oil prices may bring about the same result, which is to start the machine.The rate continues to fall.
To put it bluntly, the current textile market is characterized by “two highs and three lows”. High inventories, high raw material prices, low demand, low profits, and low startups have tortured textile companies.
The most important of these is demand. my country’s textile production capacity is aimed at the global market. Coupled with the expansion of production in the past two years, the oversupply situation is quite serious. Overseas demand is visibly shrinking, and textile companies have to continue to reduce their operating rates in order to maintain cash flow.
The editor learned that many weaving factories are now looking for various reasons to reduce their operating rates. Some companies have begun to take five days off and two days off, and even some companies with poor operating conditions have begun to take holidays. Now that the weather is so hot and the power supply is still so tight, there is just one more reason to give factory workers a holiday.
Although the price of raw materials has dropped, the price of polyester yarn is still high. At the same time, the cloth in stock is becoming less and less valuable. The fall in crude oil prices represents the market’s pessimistic expectations for future demand, and cloth is becoming increasingly difficult to sell. It is expected that the operating rate of looms in the market will further decline in the next month.
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