Yesterday, the textile market opened enthusiastically amidst the sound of firecrackers and entered the new year’s operation track. As the weaving market begins a busy new year, happiness comes just in time, and polyester also has a joyful “good start” in the market.
Crude oil stands firm at the $60/barrel mark: just one word increase!
As the source of the polyester industry chain, the continuous increase in prices of crude oil during the Spring Festival has also provided strong support for the spread of the polyester market’s good start.
On February 15, local time, many energy companies in the United States shut down equipment due to severe cold weather. Chevron Phillips Chemical Co. reported that it will prepare to shut down equipment due to ongoing weather at its Pasadena, Texas, plant; oil and gas pipeline company Enbridge said the Line 59 crude oil pipeline is closed after a power outage; Exxon Mobil The Beaumont, Texas, refinery was closed due to severe cold weather; Marathon Petroleum Corp.’s Galveston Bay refinery was also closed due to cold weather.
It is reported that the production in the Permian Basin has decreased by 65% to 80% compared with normal levels. The current daily crude oil production in the United States has decreased by more than 4 million barrels. Total U.S. oil production plunged nearly 40% to a record high as unprecedented cold weather froze well operations in the central United States, traders and industry executives said.
Market participants believe that the power supply problems that initially plagued a few states in the United States are having an impact on the global oil market. Traders and business executives say the United States has shut down more than 4 million barrels per day of production capacity, nearly 40% of U.S. crude production. The waterways that carry U.S. crude oil overseas have been disrupted for much of this week. Ben Luckock, co-head of oil trading at commodities giant Trafigura Group, said the market had underestimated the loss of oil production in Texas due to bad weather.
A rare cold wave hits the global oil market! It is understood that since November 2020, crude oil prices have continued to rise. The settlement price of Brent crude oil futures on February 15, 2021 was US$63.33/barrel, firmly holding the US$60/barrel mark. At the same time, the price of WIT crude oil reached US$59.73/barrel. barrels, both hitting new highs in the past year. Brent crude oil has increased by 22.2% from the beginning of 2021, by 13.4% in the past month, and by 55.9% in the past three months.
The polyester filament market is experiencing a large-scale rally
The market outlook will continue to rise!
International oil prices continue to rise, which has a positive impact on polyester-related products. The spot prices of PTA and MEG have both increased. Driven by international oil prices and its own supply and demand relationship, PTA futures on the Zhengzhou Commercial Exchange rose sharply at the opening on February 18. The main contract opened at 4,306 yuan/ton, an increase of 4.22% compared with the settlement price on the previous trading day. The ethylene glycol market also rose sharply, with the opening quotation of the main ethylene glycol contract rising to around 4986, an increase of 8.98%.
With the opening of the downstream weaving market, the demand for polyester filament is obviously in the recovery stage, and the “spring” of polyester manufacturers has quietly arrived. Returning from the holidays, the market price of polyester filament has achieved a “good start”. The polyester filament market has experienced a large-scale upward movement. The price focus of each product of mainstream manufacturers has increased to varying degrees, and the market outlook is generally good.
Judging from the current increase in polyester raw materials, the recent price increase is still not as high as For crude oil, the processing fee has been compressed significantly, and the market sentiment for equipment maintenance is acceptable. The basis performance is relatively strong. It is expected that the fluctuation will be stronger under the support of the cost side. There may be further momentum in the market outlook.
In general, the global epidemic situation has eased. In China, under strict epidemic prevention measures and the advocacy of “celebrating the New Year in situ”, there was no recurrence of the epidemic in local areas during the Spring Festival.
Vaccine vaccination in Europe and the United States is advancing steadily, basically in line with market expectations. As the scope of vaccination expands, new daily cases decline, and the economy continues to recover. This is the biggest factor for the market. Positive, although the polyester and polyester market in 2021 is still restricted and affected by many uncertain factors, in the short term, with the positive boost from all parties and the support of downstream demand, the “good start” of the polyester market may continue to spread , and driven by the rise of domestic and foreign bulk commodities during the Spring Festival, most weaving companies believe that polyester prices are easy to rise but difficult to fall in the future. Therefore, the editor predicts that the downstream filament weaving market may once again welcome the opening of the market on the eighth day of the lunar month. Let’s have a wave of stocking up. </p
