On the 8th, the polyester market once again staged a wave of market conditions, which was only one week away from the last market!
International oil prices regain lost ground, polyester filament: it can go up, but it can’t fall!
The raw material market is so frequently moved out of stock and driven up, and the most important positive factor is crude oil. On June 7, Saudi Arabia significantly increased its official export pricing of multiple varieties of crude oil from multiple regions, intensifying its strategy to support rising oil prices. The day before, many OPEC oil-producing countries extended historic production cuts. Tighter crude supplies could help repair oil markets hit by the coronavirus pandemic. Unprecedented production cuts led by Saudi Arabia and Russia pushed up oil prices in May, and OPEC decided on Saturday to extend production curbs into July. Brent crude oil has fallen 36% this year and has now recovered some of its losses, closing above $40 a barrel on Friday.
While paying attention to the recent polyester prices, the editor discovered something interesting.
Affected by the epidemic, the price of polyester filament continued to fall, reaching the lowest point in early April; throughout April, the price of polyester filament experienced an increase first and then In the process of decline, by the end of April, the increase at the beginning of the month had almost fallen; starting in May, although polyester prices were also fluctuating, they became a situation of rising more and falling less; and by late May, polyester prices Prices have become a situation of “it can go up but it can’t go down”.
Although the epidemic is still developing, as Europe and the United States gradually resume work and production, international oil prices have returned to above US$40/ton. Under such circumstances, polyester filament yarn There is no reason to stay at a low level.
The price of flour has increased! Weaving and texturing companies that have lost orders continue to replenish their supplies
The price of flour has increased, but bread is still hovering at a low level. Affected by the epidemic, the entire terminal demand has shrunk, which has led to the prominent contradiction of overcapacity in the gray fabric market.
In June, the weaving market once again entered the inventory accumulation stage. Many weaving manufacturers have high inventories, most of which are more than 2 months old, especially conventional chemical fiber fabrics. Due to the process Simple, so on days when orders are missing, many manufacturers choose to produce polyester taffeta, pongee, etc. for inventory. Therefore, the social inventory data is very large, which also leads to the current price confusion of these products. Even if the price of raw materials rises, they cannot be moved. Gray cloth prices increased. In these two rounds of raw material prices, the raw material inventories of some weaving manufacturers also hit a high this year. A market source said: “Recently, raw materials are still at historical lows, banks have released funds, and raw material manufacturers are promoting promotions. These factors have prompted weaving and texturing companies to restock.”
Recently The main line of weak improvement in terminal demand has not changed. The overall improvement is limited, and the market is also divided. Enterprises in some regions have reported that orders have improved month-on-month. This is mainly due to the gradual unblocking of some overseas countries. Some orders have declined, but there are also The reason why some companies are weakening on a month-on-month basis is mainly due to the lack of sustainability in domestic and foreign sales orders. After some companies placed orders in April and early May, they did not continue to follow up on later orders, and instead felt that they were weakening on a month-on-month basis.
Pulse production and sales stem from insufficient demand, and speculative demand still dominates
Since the beginning of this year, the production and sales of polyester filament have shown a pulse pattern, the downstream procurement cycle has been extended, and the one-time stocking volume has increased compared with the previous period. Especially in the two waves of purchasing nodes in early April and early May, the company’s daily production and sales were between 500% and 700%, and the production and sales of individual high-end products were around half a month. At the end of May, the polyester filament market was already weak. Overseas demand was lower than expected, and domestic demand was overdrawn in advance in the first quarter. Polyester filament yarns are at risk of decline due to the drag on market demand. However, under the support of the cost side, the trend of polyester filament has reversed, and boosted by the recent rebound in oil prices, the market buying momentum has gradually heated up, and polyester filament transactions have increased. It is true that the current terminal demand has not improved, and some weaving companies are expected to reduce their negative balance, which also confirms that the demand has not substantially improved. At present, speculative demand dominates the market, and the short-term positive market will still promote the cyclical growth of polyester production and sales. Increase the volume. </p
