On March 27, international crude oil futures prices rose sharply.
As of the close of the day, the price of light crude oil futures for delivery in the New York Mercantile Exchange 5 rose3.55 US dollars to close At US$72.81 per barrel, the price increased by 5.13%. MayThe price of London Brent crude oil futures for delivery in May rose3.13US dollars to close at per barrel span>78.12US dollars, an increase of 4.17%.
Emergency lifting of polyester yarn
Affected by this, many polyester factories continued to increase the price of polyester filament on March 28 , the increase range is 50-100yuan/tons. At first glance, it seems that the increase is not large, but You must know that the price of polyester yarn had just risen “out of nowhere” the day before. Taking advantage of the rise in crude oil, polyester factories “kept up their efforts” and raised prices. How much more? Not much.
But what’s more amazing is that although crude oil has risen so much, PTA, which has been very active in the past two weeks, is a little unsteady. Maybe it rose too much some time ago. , the spot price rose by more than 500 last week. Now it will slow down for two days, and it is possible to continue to rise after two days of slowing down. After all, it is not the price that rises first, but the winner is the one who can sell the goods at a high price.
Will Boss Bu buy it?
As the saying goes, a price increase is a price increase, but no matter how much it goes up, it will be in vain if the downstream does not buy it. After several years of “severe beatings” in the market, the current “threshold” for cloth bosses to do business is very precise, and it is difficult to fool them by raising prices to remove inventory.
When visiting the market, when asked about their strategies for purchasing raw materials, many cloth owners said that unless they received a lot of orders, they basically purchased at regular intervals.
However, it can also be seen from life experience that most of the time investments that want to make money end up losing money. The most economical way to buy things is often to buy what you need.
Of course, this is what Boss Bu was forced to do.
Compared with the price of polyester yarn in the past few years, the current price of polyester yarn is definitely at a low level, and the possibility of increase in the future is greater than the possibility of decrease. However, this is not a lack of money.
Since the second half of 2018, the market conditions have exceeded the lower limit every year. If you ask textile people in 2019 , which year was the worst, they would answer this year. But if you ask this question this year, they may answer it next year. There is no way, the market situation is getting worse year by year, which has worn away the spirit and confidence of many cloth bosses.
What’s more important is that cash flow is tight. Enterprises that invest in and open factories do not spend money on land, factories, machinery, workers’ wages, water and electricity. The sunk costs are huge, and the financial pressure on themselves is great. Also because the market was not good in the past two years, people generally encountered serious inventory problems. At this time, the first consideration for companies is not profits, but how to survive.
There is a very common phenomenon in the market now. The cost of cloth bought outside is sometimes lower than that made in one’s own factory. At this time, running a factory is often not for profit, but for profit. Maintain skilled workers and a relatively mature system. As far as the editor has learned, many textile companies now rely on profits from fabric trade to subsidize the production of weaving factories.
Polyester factory: I have raised the price, you can do whatever you want
However, in the short term, upstream polyester factories do not care much about the opinions of downstream weaving companies. Should polyester prices continue to rise? PTA prices soared last week. Although the price of polyester yarn increased, it did not increase much. On the contrary, profits were severely compressed. However, on the other hand, the production and sales of polyester yarn last week were very good. Well, the average production and sales for a week was 128%, which was an increase of 90% compared to the previous week. It was a huge increase. Went to stock up.
Now that the inventory of polyester factories is not high, they are traveling lightly and there is no pressure on production and sales in a short period of time. Naturally, they need to take this opportunity to increase prices first and restore book profits. Even if the weaving companies do not buy it, the stock of silk will be used in the end. After all, I have to buy it. It is better to not raise prices now and have less psychological impact from a surprise surge in the future. For these large polyester factories, long-term success is the way to go.
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