On the evening of March 4, Beijing time, the 14th OPEC and non-OPEC ministers’ meeting was held via video conference. OPEC official website released meeting news after the meeting.
At this meeting, the ministers approved to maintain the production level in March until April, except for Russia and Kazakhstan. Due to continued seasonal consumption patterns, Russia and Kazakhstan will be allowed to increase production by 130,000 barrels and 20,000 barrels per day respectively.
Affected by the news that OPEC+ extended production cuts, international oil prices rose sharply overnight. WTI crude oil closed at US$64.03/barrel, and Brent crude oil closed at US$67.24/barrel, both with increases of more than 4%. The international oil price has increased by more than 30% since the beginning of the year.
Spurred by this good news, both PTA and ethylene glycol futures rose on March 5.
Some polyester factories Silk prices also rose again after being stable for many days.
The price of polyester yarn from Dongtai No.1 Factory increased by 50 yuan;
The price of polyester yarn from Taicang No.1 Factory increased by 50 yuan;
Today’s polyester yarn quotation from Tongxiang No.1 Factory Increase by 50-100 yuan;
Today, another large factory in Tongxiang raised its quotation price for some specifications of polyester yarn by 50-100 yuan.
Textile people can’t help but wonder, is a new round of rising prices about to start again?
After the beginning of the new year, although the price of polyester raw materials has been rising, the response of cloth bosses has been divided into two stages.
The first stage: buy, buy, buy
The Spring Festival holiday has just ended, and the increase in crude oil accumulated during the Spring Festival has begun to exert force, driving PTA, The price of polyester raw materials such as ethylene glycol has risen sharply, and the price of polyester filament has also changed every day. In exaggerated cases, some polyester manufacturers even updated their prices three times a day.
The prices of gray fabrics have also risen in response, with some rising by two or three cents, and many rising by two or three cents. Faced with such crazy price increases, traders and fabrics who have anticipated demand have In order to control costs, companies start stocking up in advance, and the market is booming.
Second stage: wait and see
When the price of polyester raw materials rose to a high level, the risk alarm bells in the hearts of textile companies began to ring. Terminal market demand has not yet risen, and weaving companies have returned to their original state of buying and using.
Although the price of gray cloth has gone up, the same cloth is now several cents more expensive per meter than half a month ago. There are not a large number of orders placed now, so traders should stock up. The cloths were almost all stocked up, so I started to wait and see again.
Before the surge in crude oil, both weaving companies and downstream fabric companies maintained a wait-and-see situation. Polyester production and sales have remained at a low of 20-40% for a week. .
Will this round of rising crude oil prices drive a new round of polyester filament rising craze? The editor thinks the possibility is not high.
Insufficient demand for raw materials
The attitude of weaving companies in the market towards purchasing raw materials can be roughly divided into two types. One type of weaving company is a risk preference type. , are willing to prepare a large amount of raw materials when polyester has a rising trend, and most of these manufacturers have already purchased during the previous wave of rising prices; the other is a conservative type, buying and using raw materials as they please, and only those who have received large orders Will buy it when time comes. Regardless of the type of company, there is no incentive to purchase large amounts of raw materials in the near future.
It is difficult for oil prices to continue to rise
The OPEC+ meeting will indeed bring about a surge in crude oil prices, but if the meeting does not reduce production, it is also because the new crown epidemic has not been completely eliminated Control, factors such as insufficient market demand, and terminal demand have not yet been fully released, so it is difficult for oil prices to continue to rise.
End demand is not supported
In addition, the rise in polyester raw materials at the beginning of the year also contains a certain amount of speculation, and the end market has not shown a significant improvement. , On the contrary, under the impact of the epidemic, global clothing inventories have reached a record high, so it is difficult to support the emergence of a new round of price increases.
Of course, whether the price of raw materials will rise in the future mainly depends on the number of market orders in the future. The editor also learned that textile people are relatively confident in the market conditions in the traditional peak season of March and April.
I hope that this year’s textile market will usher in a real “gold, three, silver and four”! </p
