Polyester filament prices have dropped again! It’s time to make a difficult decision whether to stock up on raw materials or not! Although it is a common question whether we need to stockpile raw materials, it is always a difficult problem with no right answer for weaving companies.
Polyester fell by nearly 1,000 yuan in 2 months
In July, chemical fiber manufacturers have been conducting “big promotions” to increase the production and sales of polyester filament, but the effect It’s negligible, but the price of polyester filament has been successfully reduced. At present, compared with the price increase in May, the average price of polyester yarn has dropped by more than 600 yuan/ton. Specifically, FDY 150D is quoted at 5,425 yuan/ton, down 13.61% from May; POY 150D is quoted at 4,925 yuan/ton, down 9.96% from May; DTY 150D is quoted at 6,450 yuan/ton, down 9.15% from May. %.
It is risky to buy polyester at the bottom, but there are still people willing to bet
The current price of polyester yarn is indeed low and attractive, which has triggered the idea of buying the dip among some cloth bosses. But after so many times of bargain hunting, I have tasted the pain and sweetness. Just like gambling, it is very risky, but it can also be addictive.
A textile boss’s self-mockery: “I bought raw materials at the bottom at the end of last year. Unexpectedly, I lost 5 million yuan due to the sharp drop in the epidemic after the beginning of the new year. You can see the current price of polyester yarn, and With the idea of buying the bottom, it is really addictive! But after all, I have experienced the lesson of failure, so I don’t dare to hoard more this time, and the liquidity is not abundant, so I first bought 1 million to try the water.”
But Mr. Dai, who owns 280 looms, was very bold and made a wave of “magic operations” in purchasing raw materials. “Now is a good opportunity to buy raw materials at the lowest price. I think the price of PTA cannot be lower. Now I can buy as many raw materials as I have as much money as I have. I will stock up on some every week, and I have stocked up so far. 800 tons of polyester yarn.”
It is true that there are still some cloth bosses in the market who dare to buy at the bottom, but there are also quite a few cloth bosses who choose to buy and use as they please and avoid risks. In fact, regardless of bargain hunting or not, it indirectly shows that weaving companies cannot afford to lose money!
The price of polyester filament is difficult to affect the price of gray fabric, and the cost is a flaw
Not only the price of polyester filament is low, but the price of gray fabric is also low Even lower. The price of polyester yarn is highly volatile and can fluctuate according to the price of raw materials such as PTA. However, it is difficult for gray cloth prices to fluctuate. Even if raw materials increase, gray cloth prices remain unchanged. In previous years, according to feedback from cloth bosses, when the increase in polyester yarn exceeded 500 yuan/ton, the price of gray fabric would increase by 0.1 yuan/meter. Now, the price of polyester yarn in May increased by more than 1,000 yuan/ton compared with April, while the price of gray fabrics still cannot rise, and some manufacturers are even cutting prices to sell goods.
In other words, the price of polyester yarn hardly affects the price of gray fabric. In this case, the weaving company can only save the situation by reducing costs. Every dollar saved on purchased raw materials may reduce losses for the company. This is why Boss Bu is willing to take a chance on bargain hunting.
Liquidity is not abundant, so be safe and conservative
On the one hand, a typical cloth boss is afraid that the risk of bargain hunting is too high and it is easy to lose all his money. Even when the market conditions were good in previous years, many companies still did not dare to make this bet. In addition, most weaving companies currently have a large amount of gray fabric inventory on hand, so they will be more cautious when buying bargains.
On the other hand, due to the market downturn, the price of gray fabrics has fallen too much and profits have dropped seriously, resulting in a reduction in corporate profits. A large amount of gray cloth inventory is actually uncirculated funds. Therefore, capital turnover has become the biggest difficulty for enterprises this year. In the absence of abundant liquidity, buying low-priced raw materials is tantamount to digging one’s own grave. Furthermore, even if some cloth bosses are determined to buy at the bottom, they are limited by funds and are unable to do so.
Editor’s Note
In general, Boss Bu, whether he buys the bottom or not, is the ultimate source of imbalance between supply and demand. Factors affected Boss Bu’s judgment on bargain hunting. Therefore, in the current situation, there is no right answer whether to stock up on raw materials or not. Although the editor mentioned bargain-hunting companies, it is not advisable to follow the trend. I hope every company can see itself clearly and choose the one that suits them.
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