In August, the price of polyester filament fluctuated and increased, and the cash flow of POY and FDY gradually improved. So far, some models of FDY have turned losses into profits, among which FDY150D/96F has a cash flow of 21.25 yuan/ton. Since August, some models of DTY have experienced cash flow losses, while the profits of raw yarn have been improved and the profits of elastic yarn have been continuously compressed.
It is difficult to get rid of inventory and have weak bargaining power. Texturing companies are really having a hard time recently
The number of texturing machine companies has surged in recent years. In the fierce competition, market prices have become more transparent. The cost advantage of traditional textile companies is gradually declining, and profit margins are further squeezed. Coupled with the increasingly stringent policy environment, most textile companies are struggling to survive in the cracks. It is difficult to get rid of the inventory of manufacturers, so they dare not increase the demand for raw materials and can only buy on demand. The current inventory of DTY manufacturers is about 34.5 days. DTY manufacturers have high inventory and it is difficult to improve their bargaining power. On the one hand, POY production capacity is highly concentrated, POY factories have stronger market control and price control capabilities, and texturing factories have weak bargaining power; on the other hand, DTY has a competitive pattern of excess small retail investors, and most of its sales are still based on underpayments. It mainly focuses on payment, and its bargaining power with downstream companies is also weak.
Weak downstream demand has seriously affected the inventory of gray fabrics of weaving companies, and has also indirectly affected the inventory of polyester filaments, while increasing As an “intermediary” between upstream and downstream companies, life is indeed difficult. In addition, since two years ago, a large number of texturing machines have been put into production on the market, and the oversupply of DTY has intensified. Competition among texturing companies is fierce, and the product structure is single. If manufacturers lower prices to clear inventory, it will be difficult for micro and small texturing companies to obtain funds. Withdrawal, the ability to resist risks will be even worse. In the medium to long term, the living space for retail investors to add bullets will be further squeezed.
The demand side is looking forward to the Golden Nine and Silver Ten. If polyester companies offer discounts and promotions, it will still be a key node for stocking up at low prices in the near future
According to customs statistics, my country’s exports of textile yarns, fabrics and products in July 2020 were US$15.9769 billion; from January to July 2020, my country’s exports of textile yarns, fabrics and products were US$90.0804 billion, a year-on-year increase of 31.3%; From January to July 2019, my country exported US$68.6309 billion of textile yarns, fabrics and products. Due to the impact of the epidemic this year, the downstream terminal textile market has indeed experienced a difficult period. But after the storm, there will always be a rainbow. Recently, the foreign trade textile market has shown signs of recovery. After the storm after the epidemic, many foreign trade companies in the terminal market have recently received orders. According to statistical data, as of August 13, the comprehensive operating rate of chemical fiber weaving in Jiangsu and Zhejiang was 67.68%, an increase of 5.08 percentage points from the previous month.
Recently, orders for domestic trade shoes, clothing and underwear fabrics have improved in autumn and winter, and orders for foreign trade European and American home textiles have picked up, which together have promoted the recovery of the industry’s operating rate. However, it will still take some time for the overall foreign trade to fully recover. The short-term return of partial orders from Europe and the Middle East does not yet represent the complete recovery of the foreign trade market. Therefore, we must continue to pay attention to the changes in orders for weaving gold, silver, and silver products in the future.
According to feedback from industry insiders, judging from the recent order situation, many texturing companies also said that the recent order situation has improved compared with the previous period. In addition, Haining’s warp knitting market receives orders better than other regions, and the demand for fine-denier and porous DTY products has increased significantly. Judging from market trends, downstream demand has begun to gradually recover! Therefore, although the current terminal demand has not returned to last year’s situation, considering that the current price of polyester filament is at a historical low, texturing and weaving companies will still be willing to buy if there is no financial pressure. If polyester filament companies offer appropriate promotions, downstream companies will Users will still consider stocking up on dips. But for now, taking POY150D/48F as an example, the current price is at a historical low and is far lower than the price level of previous years.
Although the current cash flow of polyester filament yarns has improved slightly, most varieties are still at a loss. Therefore, polyester filament yarn companies are more willing to stabilize the market in the short term. </p
