First of all, let’s take a look at the two pictures below. Can you guess what these two pictures are?
The answer is revealed!
This is the trend chart of ethylene glycol futures and PTA futures on March 9. The editor saw these two when I turned on the computer in the morning. I was shocked when I saw the picture. I have never seen a limit drop before, but this is the first time I have seen this kind of true straight-line decline.
Specifically, on March 9, the main 2005 contract of ethylene glycol futures opened at the limit, and finally closed at 4069 points, down 214 points or 5% from the previous trading day.
PTA also opened at the lower limit. The main PTA futures 2005 contract finally closed at 4078 points, down 216 points or 5.03% from the previous trading day.
In terms of polyester filament, under the influence of the sharp fall in the prices of raw materials such as PTA and MEG, the price of polyester filament, which was already in a downward trend, continued to fall. A major polyester filament manufacturer in Tongxiang The price of polyester yarn from a factory in Jiangsu fell by 100-200 yuan/ton, and the price of polyester yarn from a factory in Zhejiang fell by 150 yuan/ton today. Taken together, the quotations of all polyester factories have been reduced by 100-200 yuan/ton.
In terms of production and sales, affected by the falling prices of polyester yarns, the wait-and-see attitude of weaving enterprises has increased. Today, the production and sales of the polyester filament market in Jiangsu and Zhejiang are light, with the average production and sales of mainstream manufacturers at 20%-30%. Some, Factory production and sales can reach 50-70%.
The sharp fall in international oil prices is The main reason
In the early trading of the Asian market on March 9, international oil prices Avalanche, Brent crude oil futures opened down more than 31%, at $32.14 per barrel. WTI crude oil fell by 27% to US$30.07 per barrel.
The trigger for the plunge in international oil prices was Saudi Arabia’s announcement on Saturday to significantly reduce the price of crude oil sold to Europe, the Far East and the United States. The discount was the largest in more than 20 years. To attract foreign refineries to buy Saudi crude oil. Prior to this, the “OPEC+” (OPEC and its allies) production reduction negotiations collapsed in Vienna last week.
There is nothing new under the sun, Boss Bu said, I have watched this episode.
When the market was not good in 2019, conventional products such as pongee, polyester taffeta, and imitation silk had overcapacity, and there were frequent dumpings and dumpings of goods on the market. As a result, the price of cloth has become lower and lower, the cloth in stock has become less and less valuable, and the funds of weaving enterprises have become increasingly tight, which has further aggravated the phenomenon of dumping and dumping goods in the market.
OPEC has played a major role in maintaining international oil prices at a high level in the past. Every time there are signs of a drop in oil prices, there will be a meeting between oil-producing countries. Negotiate production cuts. After the breakdown of the production cut negotiations, Saudi Arabia, one of the OPEC members and the world’s largest oil producer, issued a statement over the weekend that it planned to increase crude oil production by 2 million barrels per day. This is undoubtedly sending a signal: the price war has begun.
Some analysts said that today’s oil prices may not have reached the bottom yet, and prices may fall by another 30% in the future.
Global epidemic causes concern
The World Health Organization said on the 8th that as of 10:00 Central European Time on the 8th (Beijing time on the 8th at 17 (At that time), the data reported by various countries received by the WHO showed that the number of countries and regions affected by the new coronavirus epidemic outside China has reached 101, and the cumulative number of confirmed cases has reached nearly 30,000.
Not just South Korea, Japan, Iran and Italy , now France, Germany, the United States, the United Kingdom and other countries are also experiencing epidemic outbreaks.
As of 10:00 Central European Time on the 8th (17:00 Beijing time on the 8th), in addition to Italy, 589 cases were diagnosed in Spain in European countries; 273 were diagnosed in the United Kingdom Cases; 281 confirmed cases in Switzerland; 2 confirmed cases in the Netherlands65 cases; 200 confirmed cases in Belgium; 168 confirmed cases in Sweden; 157 confirmed cases in Norway.
In Asia, excluding Japan and South Korea, Singapore has 150 confirmed cases; Thailand has 50 confirmed cases, 31 cured cases, and 1 death; Malaysia has 99 confirmed cases, and 24 cured cases ; 64 confirmed cases in Kuwait; 85 confirmed cases in Bahrain; 30 confirmed cases in Vietnam; 40 confirmed cases in India; 54 confirmed cases in Iraq; 45 confirmed cases in the United Arab Emirates; 39 confirmed cases in Israel; and 16 confirmed cases in Oman.
In Oceania, Australia has confirmed 74 cases; New Zealand has confirmed 5 cases. Canada in North America has 63 confirmed cases.
At this time, news suddenly came out that German customs intercepted 240,000 protective masks imported from Switzerland. Textile people can’t help but sigh, I have also watched this episode!
The outbreak of foreign epidemics has posed huge worries for the future textile foreign trade market and contributed to the plummeting price of polyester products.
Polyester Enterprises: House leaks happen despite continuous rain
For polyester companies, this round of decline will undoubtedly further suppress the already sluggish polyester market.
Weaving companies are generally delayed in starting operations this year. Last weekend, the operating rate of looms just returned to about 70%. Therefore, the inventory of polyester factories is already at a historical high, and the average inventory Close to 40 days.
Last week, the production and sales of polyester factories increased with The price of polyester filament rose slightly and finally recovered. In the case of low operating rate of polyester, polyester stock fell slightly.
Nowadays, the crude oil collapse and the price of polyester raw materials continue to fall, which will inevitably aggravate the wait-and-see mentality of weaving companies, and the road of destocking of polyester factories will become more difficult.
Weaving Enterprises: Unforeseen circumstances Fengyun
For weaving companies, this time they also suffered An unforeseen disaster.
Due to the backlog of demand caused by the epidemic holiday, textile companies have received relatively good orders after the beginning of the new year. The price of spring and summer staple fabrics such as imitation silk has even dropped due to the hot market. As a result, the inventory of gray fabrics, which hit the sky last year, has also slowly decreased since the beginning of the new year.
But after the price of polyester products plummeted this time, It will inevitably affect the price of gray fabrics, and the price of fabrics in stock will become lower than before; on the other hand, with the outbreak of the epidemic abroad, it is unknown to what extent the foreign trade market can recover this year, and the confidence of the textile market has suffered. further suppression.
Editor’s note:OPEC failed to reduce production, and oil-producing countries started a price war, resulting in an “epic-level” plunge in international oil prices, and polyester products also plummeted. In addition, the new crown pneumonia epidemic continues to spread internationally, and the recent textile market has been negative. But the good news is that the domestic epidemic has been effectively controlled. I hope textile people can take this as an opportunity to survive this difficult time.
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