The National Day holiday has just passed, and the raw material market seems to have made a 180-degree turn. It has changed from the decline in the past few months to a continuous decline. of rise.
Polyester filament yarn
October 9, plus During the National Day period, the prices of various specifications of polyester filament in polyester factories generally increased by 100-300 yuan/ton;
On October 10, polyester filament continued to rise, and various factories The increase in polyester yarn ranges from 50-100 yuan/ton…
Except polyester filament , polyester staple fiber, cotton yarn, viscose, spandex, nylon and other raw material prices have also increased to varying degrees, and the increase is almost not small.
It has only been a few days, but the changes in the raw material market are a bit uncomfortable. It’s like 2020, what is the reason for this?
International oil prices rise
Norwegian workers went on strike during the National Day , causing oil prices to rise by more than 9% last week, ending the previous two weeks of decline.
And now, the hurricane named “Delta” is currently strengthening over the Gulf of Mexico. Currently, the hurricane has reduced production in the Gulf of Mexico by 1.67 million barrels per day, accounting for 92% of total Gulf of Mexico oil production. The losses are the highest since Hurricane Katrina in 2005.
Affected by these unexpected factors, international oil prices have continued to rise sharply in the short term, which has also contributed to the rising prices of polyester raw materials to some extent.
Changes in market demand
Compared with upstream crude oil prices, The recent improvement in market conditions is the more direct reason for the rise in raw material prices.
The “Golden Nine and Silver Ten” that textile people have been looking forward to has finally arrived. The number of orders in the market has increased, and the dyeing factories have returned to the busy state of the past. This is what a normal “peak season” should be like. look.
As the domestic market recovers and the foreign trade market gradually adapts to the new crown epidemic, the demand for textiles has rebounded significantly, and the “cold winter” weather forecast has also caused textile companies to stock up on warm clothing at the end of the year. Be confident. Traders have placed orders in advance, hoping to stock up as soon as possible while dyeing costs, raw materials, and gray fabric prices are at a low level. This is also a sign of optimism about the future market.
Under such circumstances, the operating rate of looms in weaving companies continues to rise, and the demand for raw materials has also increased. Some weaving companies believe that the price of raw materials will continue to rise in the future and start to stock up. It drove a wave of production and sales of polyester.
The current price of raw materials is too low
Another reason is that the price of raw materials in the past was too cheap. Taking the most common polyester filament as an example, 2019 has been a year of lower polyester prices, but compared with the same period this year, there are still nearly 2,000 The price difference is RMB/ton.
Such a low polyester price was originally caused by the once-in-a-century COVID-19 epidemic. It is an unsustainable phenomenon caused by low demand. Now that the market is showing signs of recovery, it is normal for raw material prices to begin to move closer to normal.
The price of cloth has increased, but where is the profit?
The current price of fabrics has indeed increased, and the increase in some hot-selling fabrics has exceeded 10%.
But I learned from the cloth boss that the current increase in gray cloth prices is more affected by The impact of raw materials follows the rise. Take cool silk cotton as an example. The price of cool silk cotton, which has been selling well recently, has been rising. It has increased by more than 0.2 yuan/meter in the past month. But on the other hand, the price of raw materials is also rising, and the cost increase even exceeds the increase in gray cloth. Therefore, the price increase is more to stop losses.
On the other hand, due to excessive inventory, some conventional fabrics such as pongee and polyester taffeta have fallen into the vicious circle of “if you don’t throw it away, you can’t sell it”. Basically, The loss depends on the amount of production. Even if the price increases now, the profit situation of these gray fabrics is still not optimistic.
Afterword
The price of raw materials has increased, and textile companies Orders can be received, and the dyeing factory also has to queue up… everything is as it should be in the peak season. Only by truly experiencing the “cold winter” can we feel how valuable the current market is. But on the other hand, there was such a short-lived market in May this year, but it passed quickly. The epidemic abroad is still serious, and there is even a second outbreak crisis. The domestic market alone cannot fully provide sufficient demand. Therefore, it is still unknown how long the current peak season can last.
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