Last Friday, with the discovery of a new strain of virus “Omicron”, international oil prices panicked, and WTI crude oil fell as much as 14% while Brent crude oil fell 12% more than that. At the same time, Polyester Convenient issued a notice to jointly reduce production, with the intensity reaching about 20%-25%, and its impact will also have an impact on the future market. Wind direction has an impact.
As for the price of polyester filament, some polyester manufacturers adjusted the prices of individual specifications last Thursday. Production and sales surged that day. This is not the first time this year that polyester factories have taken the initiative to reduce production. The first active production reduction will begin gradually after August 13th, when polyester filament appears. Loss, high inventory, and it is at the juncture of the traditional peak season of “Golden Nine and Silver Ten”.
In the medium to long term, this inventory reduction may be just a transfer of inventory. The orders for the “Double Eleven” and “Double Twelve” shopping festivals have come to an end, and domestic demand in the market has gradually become weak. , but the foreign trade market that was supposed to appear at the end of the year has not appeared for a long time. Now a new strain of the virus “Omicron” has appeared. Many countries have been closed again, and many shipping routes have also been closed.
The downstream situation will also affect the mentality of polyester manufacturers, so this overhaul is also imperative.
Taken together, judging from previous years, the downstream market will enter the off-season in the upcoming December, and this year’s Spring Festival is early, especially this year. There are also obstacles to new strains of virus in foreign trade. On the demand side, Under the weak situation, timely maintenance of polyester factories can not only support the price of polyester filament that has lost cost support during the decline, but also clear its gradually high inventory. The subsequent downstream market will also determine whether polyester manufacturers will Carry out further production reduction measures to protect prices and increase profits.
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In the medium to long term, this inventory reduction may be just a transfer of inventory. The orders for the “Double Eleven” and “Double Twelve” shopping festivals have come to an end, and domestic demand in the market has gradually become weak. , but the foreign trade market that was supposed to appear at the end of the year has not appeared for a long time. Now a new strain of the virus “Omicron” has appeared. Many countries have been closed again, and many shipping routes have also been closed.
The downstream situation will also affect the mentality of polyester manufacturers, so this overhaul is also imperative.
Taken together, judging from previous years, the downstream market will enter the off-season in the upcoming December, and this year’s Spring Festival is early, especially this year. There are also obstacles to new strains of virus in foreign trade. On the demand side, Under the weak situation, timely maintenance of polyester factories can not only support the price of polyester filament that has lost cost support during the decline, but also clear its gradually high inventory. The subsequent downstream market will also determine whether polyester manufacturers will Carry out further production reduction measures to protect prices and increase profits.
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In the medium to long term, this inventory reduction may be just a transfer of inventory. The orders for the “Double Eleven” and “Double Twelve” shopping festivals have come to an end, and domestic demand in the market has gradually become weak. , but the foreign trade market that was supposed to appear at the end of the year has not appeared for a long time. Now a new strain of the virus “Omicron” has appeared. Many countries have been closed again, and many shipping routes have also been closed.
The downstream situation will also affect the mentality of polyester manufacturers, so this overhaul is also imperative.
Taken together, judging from previous years, the downstream market will enter the off-season in the upcoming December, and this year’s Spring Festival is early, especially this year. There are also obstacles to new strains of virus in foreign trade. On the demand side, Under the weak situation, timely maintenance of polyester factories can not only support the price of polyester filament that has lost cost support during the decline, but also clear its gradually high inventory. The subsequent downstream market will also determine whether polyester manufacturers will Carry out further production reduction measures to protect prices and increase profits.
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