US stocks have always been the benchmark for the global economy. Affected by the raging global epidemic, after a strong rebound of more than 1,100 points on the 10th, the Dow Jones Industrial Index plunged 1,464.94 points again last night, a 20% drop from last month’s high.
The international crude oil market is even more “turbulent” , Russia rejected the Organization of the Petroleum Exporting Countries (OPEC)’s proposal to further reduce production, and Saudi Arabia quickly cut prices and increased production, causing global oil prices to fall to the lowest in 20 years.
After Trump announced the implementation of a travel ban on Europe, the decline in international crude oil futures prices expanded again, with WTI and Brent oil prices both falling by more than 6% during the day. They are now quoted at US$30.79/barrel and US$33.56/barrel respectively.
Based on the sharp decline in crude oil prices, Prices for already shaky polyester products have plummeted again.
PTA, as of the closing at 15:00 on March 12, the main force of PTA futures 2005 The contract finally closed at 3858 points, down 96 points or 2.43% from the previous trading day.
Ethylene glycol, as of March 12 At 15:00, the main MEG futures 2005 contract closed at 4,000 points, down 86 points or 2.1% from the previous trading day.
With the price of polyester raw materials falling so much, the price of polyester filament is simply unstable. Some factories have dropped by 100-200 yuan/ton. There is no minimum, only lower.
The price of polyester filament continues to fall. For now This is definitely not good news for cloth bosses.
The operating rate of looms has rebounded, but inventory problems remain
Orders accumulated during the Spring Festival holiday will be processed within one or two weeks after the market opens. The internal pressure was quickly digested, and the market returned to a tepid state.
According to data monitoring from China Silk City Network, as of March 11, the operating rate of looms in Shengze has risen to more than 70%, while the average inventory of weaving companies has declined slowly and remains Maintained around 38 days.
Although weaving companies are generally cautious in purchasing raw materials due to the poor market last year, as the operating rate of looms continues to rebound, the rigid demand for raw materials still exists.
International epidemic outbreak, future orders Worrying
With the rapid outbreak of the new coronavirus pneumonia around the world, confirmed cases The number of people is changing day by day. The medical systems of countries such as Iran and Italy are being broken down. More and more countries and regions have issued orders such as “city closures”.
Judging from China’s textile consumption in January and February, as the epidemic continues to spread, people’s willingness to go out has significantly decreased. At this time, the consumption of clothing will Being heavily compressed.
Academician Zhong Nanshan once said that the foreign epidemic will last at least until June this year. It can be said that when the entire epidemic does not improve significantly, the textile foreign trade orders on the market will It’s hard to get better.
During the visit, the editor also learned that due to the severe epidemic in South Korea, an order of 300,000 meters of fabric exported to the local area was canceled due to force majeure. This not only Just an example.
Foreign trade orders are worrying, polyester filament prices As prices continued to fall and gray fabrics began to accumulate again, the mentality of cloth bosses couldn’t help but change.
Raw materials: Buy more and you will lose more, buy less and you will lose less
The continuous decline of raw materials since the beginning of this year has reminded cloth bosses Was raped last yearThe fear of wire prices being dominated. The decline in polyester yarn since the beginning of last year has heartbroken the weaving boss who had been hoarding raw materials for several months.
After the beginning of this year, black swans flew out one after another (is this Swan Lake?), and the price of polyester filament plummeted. .
The good news is that most weaving bosses have learned a lot and only prepared raw materials for 15-30 days; but the bad news is Yes, the price of polyester filament is falling every day. If you buy it today, the price will be reduced tomorrow. There is no difference between loss and profit, only the difference between small loss and thanks.
Cloth prices: Falling , cannot rise
Compared to the change in mentality of buying raw materials, Cloth bosses are now more troubled by how to set the current cloth price.
When the market is flat, the price of gray fabrics often follows the price of polyester filament. When the polyester filament rises, it rises, and when the polyester filament falls, it also falls. But with the price of polyester filament plummeting every day, cloth bosses will suffer huge losses if they really set prices like this.
There are many manufacturers and competition is fierce. Cloth prices tend to fall easily but not rise easily. To lower prices in this situation, you need to have the courage to cut off your wrist!
Editor’s note: The new crown epidemic has now swept across Globally, the price of polyester raw materials has plummeted. Such a “black swan” is rare in decades. For textile people, when encountering such a market situation, they need to understand information in time, change their thinking, adopt different strategies at different times, and strive to keep the company alive. History has proven that every time a storm sweeps through, what is left is not only “ruins”, but also countless opportunities!
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