In the early morning of April 13, the largest crude oil production reduction agreement was reached. OPEC+ will cut crude oil output by 9.7 million barrels per day, slightly lower than the originally planned 10 million barrels per day production cut.
Judging from this production cut, since the extent of the production cut is less than expected, it has had little effect on boosting international oil prices. On the 14th, oil prices fell back, with Brent crude oil prices below $30, and WTI crude oil falling to around $20.
Production reduction is less than expected, crude oil fell after rising, and the polyester market returned to thin
This production cut was less than expected, which dealt a heavy blow to the polyester market that had just improved. On the 15th, the PTA spot basis was weak, and MEG was in the market The center of gravity fluctuates upward. The polyester yarn market has also returned to calm, with individual manufacturers lowering their quotations.
Jiangsu direction: FDY of a factory in Wuxi was stable; polyester POY of a factory in Taicang fell 100;
Xiaoshan direction: polyester yarn of a factory in Zhejiang was stable; polyester yarn of a factory in Zhejiang fell 200; POY of a factory in Xiaoshan fell 50-100; DTY of a factory in Zhejiang reported stable; DTY of another factory in Zhejiang reported stable;
For the next trend of polyester yarn, the market It is generally pessimistic. In addition to insufficient support from upstream raw materials, the fundamental reason is still being dragged down by demand.
At present, the number of confirmed cases, infection rates, and death rates in European countries have declined significantly, and some European countries are beginning to prepare to resume work and production. But this does not mean that the epidemic has been effectively controlled. The number of confirmed cases in the United States has exceeded 600,000. There are also India and Africa where the hidden dangers are greatest. The medical conditions in these areas are underdeveloped. Once an outbreak occurs, it will not be possible at all. Uncontrollable….
Therefore, it is foreseeable that the demand for clothing fabrics will not improve significantly in April. As the market off-season deepens, weaving manufacturers are still facing reduced orders and high inventories. Manufacturers are not active in purchasing raw materials and mostly purchase them on demand. On the 14th and 15th, the average production and sales of mainstream manufacturers were only around 20%-40%.
Furthermore, due to the positive market expectations for crude oil production cuts last week, oil prices rose for a time. Many bosses also spotted this opportunity. Bosses with sufficient financial strength bought polyester yarn at the bottom. One owner had more than 200 The cloth boss of Taiwan Loom revealed: “We bought 5 million yuan worth of polyester at the bottom last week, but now we are only taking bulk orders, and most of the time we are producing inventory. Originally, we were thinking that the polyester yarn would rise. We gave it a try, but it backfired. The current price is similar to the price we bargained for. Although we have not lost money so far, if the price continues to fall, bargain hunting will become a takeover. No one dares to say where the bottom is now. This answer Only the market knows.”
Downstream demand is stagnant, and polyester factory inventories will continue to rise and accumulate. Today, the overall polyester market inventory is concentrated at 33-44 days, which is still at a high level. The future market situation is not optimistic.
However, just when commodities are falling, there is one raw material that has rebounded strongly, and that is nylon!
A little red amid the greenery, nylon rebounded strongly, can the market be saved?
Since April, as the upstream raw material caprolactam has stopped falling and rebounded, nylon filament has also experienced a wave of rising prices. Among them, nylon plus stretch yarn has the strongest growth, rising by more than 1,000 yuan/ton in just half a month.
In addition to the rebound of caprolactam which has certain support for the price increase of nylon filament, the main reason is downstream demand Caused by the surge, but this time the nylon filament is driven up��The demand is not for nylon fabrics, but for mask straps! It is reported that the two straps of medical masks are basically the market for coarse-denier spandex 70-140D and nylon double-strand 70D. Among them, spandex has a relatively low share as an auxiliary material, and nylon products can basically account for 80-85%. In addition to mask straps, protective clothing also requires a large amount of high-strength nylon yarn.
We all know that as long as products related to medical supplies are in short supply, not only are they easy to sell, but the prices are also soaring, such as melt-blown fabrics, non-woven fabrics, and Polypropylene, the raw material for melt-blown cloth that has become popular recently. The same is true for nylon filaments.
However, in the long term, the demand for nylon for medical masks, protective clothing, etc. is also limited. At present, more and more Nylon companies are at full capacity to rush orders for mask silk.
It is understood that most large nylon companies have a production capacity of more than 30,000 tons. Jinjiang and Hengshen Group, the leading companies, each have a large texturing capacity of 60,000 tons, totaling 120,000 tons. The rest Big factories such as Huading, Meida, and Wanhong all have certain texturing capabilities. Not only the big factories, but also many small factories in Zhuji, Changshu, Haian, and Xiaoshan have texturing production capabilities of 0.5 million to 10,000 yuan. Once the supply of nylon yarn increases, prices may rise and fall again. Nylon manufacturers also need to pay close attention to upstream dynamics and downstream demand.
Editor’s Note
In general, this round of “historic “Reducing production and raising prices failed. Commodities ceased operations due to the sudden drop in demand, and prices fell. However, nylon bucked the trend and rose because it can be used in the field of masks.
This epidemic is a huge test for the entire textile industry chain. “Sluggish domestic demand and blocked foreign trade” have made the current market have no improvement. At present, cloth bosses can only hope that foreign epidemics can be quickly controlled. , but even if it is under control, it will still take some time for demand to recover. Boss Bu needs to be mentally prepared in advance! </p
