On August 6, international oil prices fell sharply and stopped the “three consecutive positive days”. WTI crude oil futures fell the most during the week, reaching 6.73%, currently trading at $68.97 per barrel; Brent crude oil futures fell the most during the week. 5.7%, currently trading at US$71.13/barrel, falling below three levels of US$73, US$74, and US$75 during the week, the largest decline in the past two weeks.
Polyester filament prices have fallen, and production and sales are still sluggish
which originally lacked upward momentum Polyester yarn, boosted by the decline in crude oil, put down its arrogant attitude, ended the continuous rise in prices, and began to return to weekly price reduction promotions. In one week since August, polyester filament has been on sale, with prices reduced by 100-200 yuan/ton. In terms of specific products, the price of polyester filament FDY 150D is concentrated at around 79,500 yuan/ton, the quotation price of POY 150D is concentrated at around 7,825 yuan/ton, and the quotation of DTY 150D is concentrated at around 9,400 yuan/ton.
Reviewing the weekly promotions from April to June, the production and sales on the promotion day will be There is a pulse rise. However, the August promotion ended with average weekly production and sales at about 50%, and the trading atmosphere was quite sluggish. The “buying increase” failed and the “promotion” also failed, and life for polyester factories became increasingly difficult.
Weaving companies have reduced shipments, and the operating rate has dropped
The trading atmosphere in polyester factories is sluggish. It is conceivable that downstream weaving manufacturers are also doomed. The two have a close relationship. Although it has entered August and the weakest month of July has passed, the weaving market is still in the off-season. According to the data monitoring of sample companies by China Silk City Network, the current operating rate of water-jet and air-jet looms in Shengze has dropped to around 74%. Even the operating rates of warp knitting and circular knitting machines that have been running at a high level in Xiaoshao area have declined to varying degrees, and the inventory of finished gray fabrics is at a historical high.
Some weaving companies have experienced a cliff-like decline in goods sales, and gray fabric inventories have increased rapidly . A weaving company that mainly produces corduroy said that with the hot weather, the sales of corduroy have become increasingly deserted, and the inventory of gray cloth has risen to half a year’s worth.
There are only small batch orders for printing, dyeing and trade
The printing and dyeing process also reflects the fatigue, the quantity of gray fabrics entering the warehouse has dropped slightly, and the start-up rate is only at 68%. Most dyeing factories have an operating capacity of around 70%, a few dyeing factories with a lower operating load have an operating capacity of only 50-60%, and a few have an operating rate of less than 50%. The follow-up of new orders is slightly weak, and orders are mainly small batch orders.
For traders, there are currently not many orders on hand. Most of the large goods are small batch orders, and large orders have almost disappeared. At the same time, there are not many proofing and staking outs, which indicates that the quantity of large goods to be released will not be large. Especially in terms of foreign trade, as the overseas epidemic worsens, some regions have once again stopped accepting orders, which undoubtedly makes the situation worse.
The textile industry chain seems to be shrouded in the haze of decline from top to bottom. The impact of falling oil prices is being transmitted step by step, which has also caused the price of polyester to fall. The sluggish terminal demand also affects the production, sales and prices of gray fabrics, polyester, etc. So, when will terminal demand emerge from the downturn? Judging from the current overseas situation, it is still difficult for the textile industry to recover for the time being. Last week, the global COVID-19 epidemic continued to worsen. The United States continues to be the country with the most confirmed cases in a single day, followed by India, Iran, Indonesia and Brazil. At the same time, the epidemic is spreading more widely in the Asia-Pacific region. Case numbers are now at record highs in Sydney and Melbourne, infections and deaths are at record levels in Thailand, and new confirmed cases are surging in the Philippines.
What’s even more frightening is that a new virus called “Lambda” has appeared! According to CNN, with the spread of the new coronavirus epidemic, cases of “Lambda” strain infection have appeared in the United States. This mutated strain was first discovered in Peru in August last year. Currently, 1,060 cases caused by the “Lambda” strain have been discovered in the United States, and the “Lambda” strain has appeared in about 30 countries and regions.
The epidemic has always been the biggest factor restricting demand in the textile industry. Things are getting worse again, with city closures and work stoppages happening frequently, which will lead to the loss of some orders. Some downstream companies have stopped taking orders because of this, and they dare not take orders even if they exist. The spread of the epidemic in Southeast Asia is also a double-edged sword, which may catalyze the return of some overseas orders to the country. The downstream weaving and trading side of the returned orders have not received substantive orders at present. Even if they are placed later, for the huge market, the orders received by enterprises may only be a few orders, which is just a drop in the bucket. The impact of the epidemic on the supply side of the industry is still continuing and is getting worse. The downstream industry is about to usher in the traditional peak season. Under the pressure of the epidemic, the market direction may change. We will continue to pay more attention to the epidemic in the future.�, terminal demand, crude oil prices and other aspects.
</p
