The market has always ushered in a wave of pre-holiday stocking before the New Year’s Day holiday. However, this year’s downstream market production and sales before the holiday did not usher in the downstream concentrated stocking cycle as scheduled. This makes the market even more looking forward to the release of rigid demand after the holiday. . Most of the raw materials in the downstream weaving market are running out before the holiday, and the polyester market is also ready to move at this point.
As expected, after New Year’s Day, with the help of all aspects, the polyester market ushered in a happy “good start”.
It is reported that the production and sales of polyester filament exploded on the 4th. The average production and sales of mainstream factories are between 150% and 200%, and some factories can even reach 400%. At present, under the support of rigid demand, the demand for polyester is still expected to improve to a certain extent.
Judging from the situation of downstream weaving orders, the current situation of the weaving market in different places is different. Due to the different impact of raw material cost pressure, the market differentiation is serious. However, judging from the market expectations of textile people from various places, the recent market expectations are still optimistic. At the same time, the rapid rise of polyester raw materials has also supported the originally weak market sentiment to a certain extent.
The sound of the machine is rumbling, full of life!
Jiangsu weaving market will not have a holiday on New Year’s Day, and polyester will get off to a good start!
With the arrival of the New Year’s Day holiday, most domestic companies are on holiday, but along the river and coastal areas of Jiangsu, the workshops of textile companies of varying sizes are still busy. It is understood that many textile companies in Jiangsu did not suspend work during the New Year’s Day holiday. The person in charge of a local textile company said that during the holidays, companies started more production, the operating rate increased, production exceeded sales, and raw material procurement decreased compared with before the holiday.
1. Most companies have sufficient orders on hand. Some of the ordered products are related to the production and sales of clothing and bedding in the Spring Festival market, so the textile companies that receive orders need to meet the construction deadline early. Delivery must be done overtime during the New Year’s Day holiday;
2. Some companies whose initial production rates were not very high faced the favorable situation of an inflection point in production, in order to comply with user orientation and maintain quality and quantity. , working overtime to produce.
3. Some companies have seized the opportunity of the current high market operation to make up for their shortfalls in production and sales in the first half of 2020 due to the epidemic. In this regard, the governments of some textile industry regions such as Yancheng, Jiangsu, also launched the “Oath to Win a Good Start in the First Quarter” campaign, and enterprises actively cooperated to form a situation of getting started quickly. Therefore, in the local textile industrial park, the sound of machines was rumbling throughout the festival. A source of vitality.
Currently, the market demand for gray fabrics in coastal areas along the river and in small and medium-sized weaving textile enterprises has increased, and the demand for domestic medium and low-grade yarns, gray fabrics, etc. Small workshop-style textile enterprises in northern Jiangsu and traditional open-end spinning products have created good opportunities for production and sales, and the current situation that many local small textile enterprises are booming in production and sales also proves this.
It is understood that during the New Year’s Day, mainland textile companies produce more than they sell, and the organized purchase of raw materials is relatively small or even suspended. The reason is that many upstream supply entities and markets have holidays. Textile companies mainly use raw material stocks to ensure real-time production during the holidays. Except for special circumstances, most companies arrange post-holiday delivery and shipment. What’s more important is that during the New Year’s Day, most parts of the country suffered from severe cold weather. Roads and rivers were frozen and frozen, making transportation difficult. During the New Year’s Day holiday, transportation capacity decreased, and companies were busy with workshop production. After the holiday, the basic production, supply and marketing of textile enterprises entered a normal cycle.
Polyester raw materials:
The circulation of spot goods is tightening, and the industrial chain is booming
Since November, there have been frequent positive reports on vaccine progress, the market is relatively optimistic about demand recovery expectations next year, market risk appetite has increased, and international oil prices have become V-shaped. Bounce and break upward. During this period, as the PTA futures spot market reached a record low again in mid-November, market bargain-hunting funds were eager to borrow the benefits of crude oil. In the spot market, some manufacturers were oversold in the early stage, and the shipments were tight. The delivery warehouses were expanded, and traders were willing to register warehouse receipts under the weak basis. Strong, resulting in tight supply of circulating goods, which strongly boosted the upward momentum of bull funds. Although there were adjustments during the period, the pressure on downstream polyester inventory was small and the macroeconomic favorable conditions helped, so the adjustment was limited.
During the holiday period, macroeconomic conditions were favorable, and polyester prices rose less and were more stable. On the first day of trading after the holiday, the tight supply situation of some major manufacturers has not yet eased, and Hanbang is expected to stop. This will lead to another tight supply of goods in some areas. In the short term, supply of goods will continue to flow into the reservoir area, and the circulation of spot goods will become increasingly tight. There will be a mismatch between supply and demand. The current price of PTA will rise sharply. On the other hand, another polyester raw material, ethylene glycol, will be transported due to the epidemic. It stopped and started to rebound in December 2020 due to increased demand.
Currently due to the reduction of environmental protection production in the downstream, demand may decline, but a large number of ethylene glycol devices are still operating at low load, and the spot price of ethylene glycol in East China has increased by 100 yuan/year compared with before New Year’s Day. Ton. The sharp improvement in polyester raw materials has led to the improvement of polyester production and sales, and the industrial chain is booming.
In general, after returning from the holiday, the cost support is mostly stable, and the polyester factory inventory may still be within a reasonable range, and its push-up mentality is still strong. In addition, although the downstream The demand recovery period is long, but some conventional fabric manufacturers said that domestic orders are relatively sufficient after the holiday. In addition to raw materials and supply and demand fundamentals, the polyester market trend is also affected by international crude oil and relevant national policies, and market emergencies in the polyester industry chain. and other factorsTherefore, how long the “good start” market can last after the Spring Festival, and whether the polyester and weaving market prices can enter the upward channel as expected after the Spring Festival, will be our next focus.
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