On April 22, polyester factories have another big promotion, with the promotion range reaching up to 200-600 yuan/ton:
Zhejiang Kaishi polyester filament quotation reduced 150-200 yuan/ton, with a further discount of 50-150 yuan/ton for large quantities;
Rongsheng Petrochemical’s DTY has been reduced by 200 yuan/ton, and POY has been reduced by 300 yuan/ton. Semi-gloss FDY has been reduced by 400 yuan/ton;
Tongkun polyester yarn quotation has been reduced by 300-400 yuan/ton, with discounted shipments;
days The quotation of Sheng Chemical Fiber polyester is reduced by 400 yuan/ton for one day of promotion
……
International oil prices continue to fall
The direct reason for the polyester promotion is the continuous decline in international oil prices on April 21. International oil prices ended lower for the second consecutive day, hitting another one-week low. WTI June crude oil futures closed down 2.10%, at $61.35/barrel; Brent June crude oil futures closed down 2.58%, at $65.32/barrel, both recording the largest closing decline since April 5, and recording a record high for the second consecutive day. A new low since April 13. Some analysts pointed out that the continuous decline in international oil prices is mainly affected by the epidemic in Japan and India, especially India. The data of 270,000 confirmed cases in one day will indeed make the market panic. Dragged down by oil prices, short fiber futures fell 3.4%, and ethylene glycol futures fell another nearly 3%.
But the price reduction of crude oil can only be regarded as a trigger. There are deeper reasons for the polyester factory to start a big promotion again.
Polyester stocks are re-accumulating
On last Monday (April 12), polyester factories launched a wave of big promotions, with promotions ranging as high as 200-450 yuan/ton. Faced with such low prices, a large number of weaving companies chose to “buy “Buy, buy”, in the end the average production and sales of polyester was close to 600%, and the production and sales of some polyester factories were even as high as 1000%.
But just after that promotion, the purchasing enthusiasm of weaving companies began to decline, and production and sales dropped directly to 30-50%. This lasted for more than a week, and inventory began to accumulate rapidly again. , seeing the wave of inventory that had been cleared during the previous promotion rising back up.
From the statistics of China Silk City Network, the overall inventory of the polyester market is now concentrated in 15-27 days; in terms of specific products, POY inventory is 8-14 days, and FDY inventory is to around 14-22 days, while DTY inventory is around 13-27 days.
Polyester profits are at a high point
In addition, from the perspective of polyester yarn profits, polyester factories have also recently gained the confidence to cut prices and promote sales.
Since March, PTA, ethylene glycol and other chemical fiber raw materials have surged and fallen, but the price of polyester filament has been basically stable. Therefore, the profit of polyester yarn has remained high, even exceeding Thousand dollars. Under such circumstances, if a profit of a few hundred yuan can boost sales and remove inventory, the deal is a good deal for the polyester factory.
Accepting orders is not as expected, and weaving companies have a conservative mentality
Judging from the recent market conditions, weaving companies are indeed not very enthusiastic about buying silk recently. This is determined by the lackluster market conditions in the gray fabric market. Although China’s textile foreign trade export data in the first quarter is not bad, there are too many gray fabrics in the hands of traders. In addition, more and more spot supermarkets also have a large backlog of conventional product inventories. Most weaving companies The order receiving situation is not as expected.
Even with such a strong promotion last time, judging from the situation visited in the market, there are still a small number of weaving companies that really replenish goods in large quantities, but the quantities purchased by these companies are relatively small. Big, boosting production and sales. But on the other hand, it also shows that there are still a large number of weaving companies in the market whose raw material inventories are not high, and they also have a need to purchase raw materials.
However, for most textile companies, big promotions are indeed a good opportunity to replenish raw materials. To maintain the operating rate and retain workers, regular consumption of raw materials is inevitable. Especially before the five-day Labor Day holiday in May, many weaving companies themselves have a need to replenish raw materials, so it is a good choice to buy raw materials at a more favorable price about a week in advance.
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