According to Reuters, on November 23, local time, the Houthi armed forces in Yemen announced that the organization had carried out a rocket attack on a Saudi Aramco storage and distribution station in Jeddah and posted a message on social media. Foreign companies in Saudi Arabia were warned in the media to “exercise caution” as “actions will continue”. Affected by this, international oil prices rose sharply.
On Tuesday (November 24), international oil prices hit their highest record since March, and an “inflection point” in oil demand seems to be coming soon. Market data showed that WTI crude oil rose by as much as 5% on Tuesday, finally trading at US$44.91/barrel; Brent January futures contract finally closed up 3.91%, recording US$47.86/barrel.
Affected by the rise in international oil prices, polyester filament prices increased in a small range on October 25, Tongxiang Two large factories, Xinfengming and Tongkun, have increased the price of polyester yarn by 50 yuan/ton, while some polyester factories have also canceled some early promotional offers and started selling yarn at a low price.
However, although the price increase of polyester yarn this round is not larger than in the past, it seems to be opening up A certain switch in the textile enterprises was triggered, and the weaving enterprises began to purchase silk in large quantities.
According to data monitoring from China Silk City Network, the polyester filament market in Jiangsu and Zhejiang was hot on November 25. The average production and sales of mainstream manufacturers were 150%-230%, and the production and sales of some factories could reach 500. %.
Under the influence of the large-scale market shrinkage caused by the epidemic in 2020, polyester filament “buy up but not buy” The “down” rule seems to have failed. The rise in crude oil prices and the slight rise in polyester filament yarns are difficult to stimulate textile companies to buy silk and stock up. But this time the situation has changed. Weaving companies have bought into the increase in polyester prices. Why is this?
Time is at a sensitive point
First of all, the current time point is relatively sensitive. Although due to the sharp rise and fall in the price of polyester raw materials at the beginning of the year, many weaving companies will choose to buy and use raw materials when purchasing raw materials. However, for textile companies, there is still a certain cycle for purchasing raw materials, but this cycle has been shortened. According to past experience, the end of each month is the time for many companies to purchase a new round of raw materials. In addition, it is almost December, and it is almost time for some weaving companies to stock up on raw materials at the end of the year.
Polyester returns to the price increase cycle
Second, although the price of polyester filament is more frequent this year, it has entered After the second half of the year, the overall price trend has been relatively stable, basically following a stable and volatile pattern of rising for several weeks and falling for several weeks. At the beginning of November, due to the reduction of market orders and the cyclical price, the price of polyester yarn fell by 200-300 yuan/ton. According to experience, it has now reached the range of polyester price correction. Some weaving companies have also spotted this pattern and bought silk at bargain prices.
The financial situation of textile companies has improved
Finally, after experiencing the hot market throughout October, the textile industry The company has received a lot of orders, and the original backlog of inventory has been greatly digested. Subsequently, the financial crunch has been greatly alleviated. It is precisely this situation that has resulted in some weaving companies in the market being willing and able to purchase raw materials in large quantities.
Will polyester prices continue to rise? The editor feels that the possibility of continuing to rise is very high.
First, the production and sales of polyester yarn the previous day are one of the most important basis for polyester manufacturers to adjust the price of raw materials for the next day. There was a big explosion in production and sales on November 25. , according to past experience, there is a high probability that polyester prices will rise the next day.
Second, from the perspective of the shock cycle mentioned above, polyester yarn has now entered a rising cycle ahead of schedule under the guidance of oil prices and other factors, and it is possible that the price will turn from rising to falling in the short term. Not very sexual.
Third, there have been many macroeconomic benefits in the market recently, whether it is the good news about the new crown vaccine, the official signing of RCEP, or even the fact that the US President has finally begun the transfer of power, which has a great impact on the market economy. There is a certain promotion effect on the recovery.
However, we must also see that whether weaving companies stock up or not still depends on terminal demand. The decrease in the number of orders since November is an objective fact. Some textile companies have not yet received payment for the orders they received in October, and their financial situation has not been fundamentally improved. These reasons may affect the subsequent market price of polyester yarn. certain influence. Therefore, cloth bosses still need to act within their capabilities when purchasing raw materials. </p
