Before the negotiations, everyone was betting on the “OPEC+” production reduction meeting, but who would have thought that what was waiting was not a surprise, but a shock!
Super night! All kinds of reversals, all kinds of counterattacks!
The recent oil price has been one of the focuses of the market. On the evening of April 9, the “OPEC+” oil-producing countries, described as “the only hope to save oil prices,” announced an online video conference and all oil-producing countries reached an agreement. However, this production reduction agreement, which was less than market expectations, caused oil prices to surge higher, then fell back and fell across the board.
Many market participants are jokingly saying: The crude oil market on the evening of the 9th went from red-green-red-boss-exploding red-big green, various reversals, various counterattacks, it is true So exciting!
In terms of international oil prices, Brent crude oil futures prices rose by 10% on the 9th. Above, it closed down 2.73%. The trend of New York crude oil futures was basically the same, rising nearly 13% at one time. After the news of the breakdown of negotiations came out, it quickly plunged, closing down 7.57%.
There is also news in the market that OPEC+ is currently unable to reach an agreement due to Mexico’s boycott. OPEC representatives also said that OPEC+ would not cut oil production without Mexico. Mexico’s Energy Minister said that Mexico is ready to reduce production by only 100,000 barrels per day.
Oil price assistance failed, polyester filament “died out” again!
No matter which situation caused the unexpected production reduction, for the bulk textile raw material polyester filament, the only good thing in the short term has been exhausted! On the 10th, the price of polyester filament from mainstream major manufacturers remained stable.
Just last week, polyester filament yarn ushered in the first wave of big market prices after the resumption of work, and the main fuel price was the oil price! In the first week of April, under the dual stimulus of a sharp rebound in crude oil and a fall in polyester filament prices to the lowest price in the past decade, the market ushered in a wave of “speculative purchases”! For a while, there was news that the major polyester manufacturers were closing down their products and reluctant to sell them, and their production and sales were at an all-time high.
In just a few days, the price of polyester filament is estimated to have increased by 400-700 yuan/ton compared with the end of March. Several textile bosses I know also replenished their stocks at that time. Some stocked up in 1-2 months, and some in 10-15 days.
In this wave After replenishment, it is estimated that the raw material inventory of most downstream manufacturers will rise from the previous 7 days to 20 days, and even higher to around 30 days.
(Nearly 600 people participated in the voting survey on the raw material market at the beginning of this week. Nearly half of the bosses said they would take advantage of this market trend to buy raw materials, and about 30% of the raw material inventory was more than 30 days old.)
It can be seen that this wave of market conditions has made the textile bosses who have money on hand and are determined to buy the bottom take action, and they have made up for what they need. Those textile bosses who are originally down-to-earth and purchase according to their immediate needs are still Restock at your own pace. After all, not all textile bosses have “spare money” to go in and stock up. There are still some companies that carry a “big mountain” on their shoulders and move forward with a heavy load.
“A good start” became a “full house”, and I lost 5 million yuan buying raw materials!
Recently a textile boss told the editor: “Recently a friend complained that he has lost 5 million this year because the price of silk has been falling, and they purchased a lot of raw materials at the end of last year. .” In fact, this is not an isolated case in the market.
At the beginning of this year, due to the lower price of raw materials than in previous years, and according to usual practice, there will generally be a surge in raw material prices after the beginning of the new year. However, who would have expected that this year under the influence of the epidemic, Domestic production companies are unable to resume work on time, resulting in high polyester inventories in major major manufacturers. Due to the imbalance between supply and demand, the price of polyester filament has been falling. On the eve of Qingming Festival, the price dropped by more than 2,000 yuan/ton compared with the beginning of the year.
For textile bosses who entered the market to purchase raw materials years ago, raw material prices have fallen. This means that the inventory of the weaving boss has depreciated, which is a bloody loss of profits. It is precisely because of this that textile bosses whose funds have begun to tighten are more “calm” in the face of raw material prices. For them, a small operation may cause tension in the entire capital chain.
“Currently, the raw material inventory in our factory can be produced until mid-to-late April. No matter whether the raw materials rise or fall during this period, I have stopped selling!” said a textile boss who has stocked up. . For them, the wave of raw material prices has become a thing of the past, but the biggest challenge they currently face is still at the terminal!
The domestic demand market is still weak and the signs of orders are unclear!
The epidemic gradually subsided, and cities began to wake up and gradually entered a state of full resumption of work. Domestic consumption has also begun to gradually recover, and news of price increases have been reported recently: milk tea has quietly increased in price, Haidilao has increased in price after resuming operations, and other price increase news. However, this wave of price increases has not been transmitted to the textile industry.��Apparel industry.
“There are very few people coming to make samples during this period, and we don’t have any orders recently!” Mr. Shen, the textile boss, said frankly. In previous years, he had been busy taking orders from Changshu, Keqiao and other places, and frequently traveled to dyeing and weaving factories, but this year he was bored in the office, scrolling through Douyin and watching Moments. He said: “Now conventional varieties are not doing well. Everyone says that the foreign market is not good, but we in the domestic market don’t think it is much better!”
When overseas epidemics cause While foreign orders “disappeared” overnight, domestic orders did not improve. Even though the raw materials have increased this time, it has not stimulated downstream purchases of gray fabrics.
A fabric boss who makes imitation silk said frankly: “It is not the increase in raw materials that can drive the market. The biggest reason is that our customers do not have any orders on hand, so our prices are also low.” It can’t go up, but as long as there is an order, the price is easy to negotiate!”
Based on the current market situation, most textile bosses have recently switched to production of anti-epidemic fabrics, but do not have sufficient orders for other conventional products. Some weaving manufacturers’ early orders are nearing completion, and textile bosses have considered shutting down a group of machines to “adapt” to this weak market.
“The current situation is that there is no quantity, but there is a month’s worth of gray fabrics piled up in the warehouse!” A textile boss in Jiangsu said that there is currently a lack of orders and high inventory. Next, he will Worrying about how to cash out inventory…
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