Another Spring Festival is approaching. Before the Spring Festival, the surge in polyester raw materials and the “strong market” of polyester products can be said to go hand in hand. However, the Spring Festival holiday is approaching, and the seasonal production reduction in the polyester market has already begun. Polyester manufacturers have reduced production and Maintenance has entered a climax stage, and the weakening trend of weaving demand continues. Whether the polyester market can increase both volume and price after the Spring Festival, in addition to the cooperation of polyester raw materials, the recovery of polyester market supply and downstream demand is also particularly important!
Polyester factory Spring Festival holiday maintenance plan:
(Source: Longzhong Information)
From the downstream weaving end, most terminal weaving companies are closed during the holidays, while companies above designated size remain open. The overall trading atmosphere in the market dropped to freezing point, gray fabric trading was completely closed, and weaving operations dropped to freezing point. It is expected that looms will gradually increase to pre-holiday normal levels by the end of February and early March.
The current mainstream inventory of gray fabrics in Shengze area is 20-60 days. Traders are quite enthusiastic about purchasing low-priced and defective gray fabrics. Mainstream gray fabrics Trading has basically been suspended. Although the price of polyester yarn has risen recently, the quotations of gray fabrics are basically stable. There are many local workers in the Haining area, and the holiday time is slightly later than that of other weaving companies. Although the gray fabric inventory was basically cleared in the early stage, although the company has recently started to reduce its load significantly, the mainstream inventory of gray fabric has increased to around 10-15 days compared with the previous period.
Recently, polyester factories have successively promoted shipments, and downstream users have replenished their positions many years ago. At present, the average replenishment days of downstream weaving production bases range from one month to one and a half months, with the highest replenishment days being 30 days, and the average replenishment days are around 21 days. At present, the shipments of weaving companies have almost stagnated, and clothing orders from downstream users are still low. Overall, home textile orders are expected to remain a growth point in the first half of next year.
What needs to be paid attention to when returning after the year are changes in supply and demand, especially the intensity of maintenance on the supply side. Moreover, the demand side must undergo a recovery process after the year, but the supply side is facing the cumulative pressure formed in the first quarter. Therefore, whether there will be centralized maintenance on the supply side to alleviate the market supply pressure is the focus of attention. If we look at the maintenance expectations announced in the early stage, the maintenance efforts will be relatively concentrated, which may cause a periodic mismatch between supply and demand and drive the market upward. Specifically, we still need to pay attention to supply-side maintenance and the recovery of downstream demand after the year. </p
