On April 7, the prices of two leading polyester yarn manufacturers in Tongxiang increased. A major chemical fiber factory in Shengze also raised the price of polyester yarn. Many polyester factories in Shaoxing and Xiaoshan also announced increases in polyester yarn prices. silk prices, and some factories have chosen to cancel the discounts…
Polyester factories collectively raise prices, scaring the little ones The editor went directly to take a look at the production and sales in the past two days, which was about 80%. Although it is not bad, it is not special;
Then I took a look at the international oil price. Good guy, it fell as much as 6% in the mid-market and 4% in closing;
Then I took a look at the market orders. The epidemic in Europe and the United States is out of control again. , many countries have re-closed their cities, and many cloth bosses are worried about European and American orders that have not yet been delivered, fearing that they will cancel the orders again…
Under such circumstances of “internal and external troubles”, why did polyester yarns rise? If it goes up, it goes up. The most important thing is, will it continue to rise?
Beginning in 2019, domestic PX equipment has been put into production on a large scale, and PX production capacity that previously required large amounts of imports has suddenly increased a lot. , it was labeled as “cabbage price”;
The production cycle of the new PTA device will start in 2019 Starting at the end of the year, 35 million tons of new devices are expected to be put into production from 2020 to 2022…
Follow the normal Regardless of the situation, whether it is PX or PTA, although the production expansion speed is relatively fast, considering that downstream polyester factories are also expanding production, although there is overcapacity, it is not very serious. However, as soon as the COVID-19 epidemic hit in 2020, market demand was suddenly cut off by a large margin, and prices fell to a record low.
By the end of 2020, due to the “big release” of the US dollar and the good news about vaccines, the international prices of all kinds of raw materials have risen sharply. Since PTA’s domestic production capacity accounts for the majority, the impact is relatively small. A little, and the increase is a little slower, which ultimately leads to the PTA processing fee being too low.
Insufficient profits and too much production capacity, polyester companies can only carry out maintenance. Since the Spring Festival, PTA equipment has The operating rate is only maintained at about 70%, and the maintenance of PTA equipment will still be intensified from March to April. According to CCF data, the production capacity involved in PTA production reduction in March and April will exceed 34 million tons.
Different from PTA, polyester filament does not have so much inventory pressure, so the strategy chosen is to “follow the rise, not the fall” – when it rises, one or two thousand rises like this, and when it falls, At that time, I thought about one or two hundred, which eventually led to the profits of polyester filament rising all the way.
In short, for the upstream raw material PTA of polyester yarn, the current situation is to use production reduction to slow down the overcapacity situation , to gradually increase processing costs, while polyester filament slowly increases prices with the attitude of “raw materials increase, so do I”.
Will polyester prices continue to rise?
Judging from the upstream PTA production reduction efforts, the price increase of polyester filament seems to have some confidence, but whether it can continue to rise depends on whether downstream weaving companies can buy it. Buy it.
Recently, some weaving companies have reported that due to the renewed outbreak of the epidemic in Europe and the United States, some foreign brands have experienced order cancellations like last November, and the raw materials prepared by textile companies to deliver orders have been exhausted. Stacked in the warehouse.
As the risk of chargebacks increases, some textile companies will become more cautious when purchasing raw materials, and will choose more buy-and-use methods. Whether foreign trade orders will be canceled depends more on the control of the epidemic. Although I don’t want to admit it, more than a year has passed and the vaccine has been out for less than half a year. Textile companies still have to “depend on the weather” when accepting orders.
On the other hand, from the phenomenon of “people following the herd” during the Qingming Festival, it can be found that the domestic market has recovered significantly, and with the Xinjiang cotton market, people’s recognition of domestic brands has also increased. With further enhancement, the domestic textile market will surely grow further in the future.
In addition, in mid-March, a lot of the gray fabric purchased by traders at the beginning of the year was also consumed. By then, traders are likely to need to replenish the goods, which is also an opportunity for weaving companies. .
In general, as long as downstream demand is adequate, the possibility of polyester price increases in the future is not small.
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