I don’t know since when, the promotion of polyester filament at the end of the month has driven a wave of production and sales, which has become a tacit understanding between polyester factories and weaving companies.
Now, it’s the end of the month, and the polyester factory has started promotions again, as expected. However, this promotion is slightly different from the ones in the previous few months.
The price of polyester has hit the bottom
In 2020, affected by the new coronavirus pneumonia, polyester The price of filament yarn has been falling since the beginning of the year. With the outbreak of overseas epidemics and international oil prices plummeting, the price of polyester filament fell to the bottom in April along with oil prices. This is basically the lowest price of polyester filament in history.
Beginning in May, international oil prices bottomed out, and polyester filament prices also rose accordingly. However, unlike international oil prices, which have been slowly recovering, due to insufficient terminal demand, polyester filament prices have experienced several ups and downs. Ups and downs, but the end result is still not going up.
As the textile market enters the off-season in July and August, the demand for the textile market further shrinks. Under the combined blow of several heavy blows, the price of polyester yarn has begun to rise again. Going lower, the current price is close to the lowest point in April. If coupled with strong discount measures, even weaving companies with already very tight capital chains can’t help but say “really delicious”.
The weaving market has quietly changed
The current price of polyester filament has reached an “outrageous” level, and polyester factories continue to lose money. They are not We don’t want to see prices rise, but firstly, it’s because leading polyester companies don’t have much financial pressure, and secondly, because weaving companies have too tight cash flow, so price increases are likely to become “the straw that breaks the camel’s back.” Therefore, in the past few months, several attempts by polyester factories to raise prices have failed, and downstream weaving companies simply did not buy it. However, as time goes by, this situation is quietly changing.
Since the end of August, goods on the market have begun to move.
September and October are the traditional peak seasons for the textile industry. There has always been a saying of “Golden Nine and Silver Ten”. This is mainly a stocking cycle for autumn and winter fabrics. This year, the stocking cycle seems to be moving forward.
The editor saw in the circle of friends that many textile people are already busy at this stage. Manager Xu of a large spot fabric trading company said that there are obviously more people placing orders these days. The most shipments on the day were more than 1 million meters, mainly finished fabrics, and they were busy until the early morning of the next day. This situation only occurred during the peak season in previous years. will appear when .
In terms of dyeing factories, business has also picked up. Some varieties of stretch fabrics, such as four-way stretch, T400, T800, etc., are selling well, and there are queues, which is very rare this year.
Now the shipment of some fabrics has become smoother. It is not so much that the market has improved, but more that the expected demand has returned, and the downstream stocking confidence is sufficient. .
In the first half of this year, May was also the traditional peak season for the textile industry, but the market conditions only improved for half a month, like a flash in the pan, and then fell into silence immediately. At that time, the overseas epidemic had reached a stage of rapid outbreak, and the foreign trade export of clothing fabrics had almost stagnated. Almost no one was optimistic about the sales of spring and summer fabrics, and merchants were much more cautious in stocking up.
However, with the news of successful vaccine development and the recovery of some foreign trade markets, people’s judgments about future market conditions have begun to turn optimistic. Cheap raw materials and dyeing fees also make now the best time for textile companies to stock up in advance.
Afterword
In the final analysis, the most fundamental reason that prevents the price increase of polyester yarn is The weaving company cannot sell the cloth, and all the funds have been turned into inventory, so there is no money to support the purchase of raw materials. But in the long run, the current low price of polyester yarn is originally a special product under the impact of the COVID-19 epidemic that has never happened in a century.
As long as the market shipments improve and weaving companies digest part of their inventory and make cash flow healthy again, it will be difficult to maintain the current low price of polyester filament. Therefore, the current price of polyester may be the lowest price in the next few years. </p
