Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News A large-scale promotion has begun again! What are polyester factories “afraid” of now?

A large-scale promotion has begun again! What are polyester factories “afraid” of now?



In the past three months, due to the sluggish demand in the weaving market, the collapse of upstream PTA and ethylene glycol ends, and its own high inventory, the prices of various polyester filament products h…

In the past three months, due to the sluggish demand in the weaving market, the collapse of upstream PTA and ethylene glycol ends, and its own high inventory, the prices of various polyester filament products have dropped to varying degrees, with the declines exceeding 20%. above. Since around May Day, downstream companies have successively purchased chemical fiber raw materials, and prices for products including polyester filament have recovered moderately based on certain orders. However, industry confidence is still unable to be established. In recent days, the prices of polyester filament products have doubled again. Open the downward channel.

Confidence is more valuable than gold. Chemical fiber products have been lacking confidence for a long time, even if they are currently facing high losses , low prices are still difficult to drive industry sentiment. The editor summarizes the following four factors that have caused the current lack of confidence in the industry chain.

1. The sign is a low price

It is short with viscose For example, in this wave of market, the unit price of viscose staple fiber is 8500-8900 yuan/ton, while the purchase price of vortex spinning rayon R30S is 10500-11300 yuan/ton, and the cash price is 10500-11300 yuan/ton. Or rayon yarn, both exceed the manufacturer’s marginal cost. This periodic market transaction is also a behavior that occurs because the industry price is oversold and it is expected that there is limited room for further decline. Textile companies selling goods cannot be happy because they are selling at low prices and losing money, and companies with stable prices cannot be happy either, because of the lack of Transactions and inventory pressure have not eased.

Therefore, the orders were signed at low prices, while the mainstream prices and relatively high prices were generally traded. Therefore, the intensity and level of orders for viscose staple fiber and rayon yarn were not uniform this time, and the market It is difficult to form a unified situation of tight goods, and it is also impossible to create a unified situation of tight prices.

2. The payment is not the full amount

Experiencing staged transactions Later, although the ratio of orders and inventory held by companies may reach more than 100%, most of them are cash on delivery. Therefore, in the first week after May Day, although manufacturers held orders, physical inventory increased, and companies may urge downstream companies to follow up. This is used to collect payment after receiving the goods, but the financial situation of the company is not optimistic. Later purchases are rarely paid in full. The better phenomenon is that only 60%-70% of the total payment is paid, and there is even no deposit transaction. The industrial chain The overall capital flow is not healthy and there are concerns about order cancellations and contract breaches. Constrained by this, some spinning and traders would rather give up some orders.

3. Supply pressure will increase

Polyester prices fluctuate Obviously, the main reason is that the shrinking demand for end-use clothing has made it difficult for the fabric and gray fabric market to improve, causing polyester prices to be affected. After the spread of the COVID-19 epidemic, global demand decreased sharply and it was difficult to place orders. Although some countries in Europe and the United States have recently begun to gradually resume work, the epidemic has severely suppressed the economy and it is still difficult to recover demand.

At present, the entire textile market is still tepid and lacks support from orders. The decrease in terminal demand has made it difficult for polyester filament production and sales to be flat. Only when the crude oil market is strong or there are price cuts and promotions can a wave of polyester goods be driven. The rest of the time, production and sales are relatively flat, around 50%. At the same time, polyester inventories are still at a relatively high level.

After the Spring Festival, the epidemic in February and March, Tomb Sweeping Festival, May Day, and June, the average start-up of the industry has declined year-on-year, and long-term or periodic low-load operation has only increased. Enterprises are under comprehensive cost pressure, so the periodic improvement in transactions during the May Day and post-holiday holidays instantly stimulated yarn companies in some regions to increase their load or even operate at full capacity, but it also caused supply to increase again.

4. Worry about the off-season sales in June and July

” “Being excited but not taking action” is a common phenomenon in today’s market, and this has led to the fact that the order situation in the market has not yet fundamentally improved. A survey on the recent orders received by textile companies showed that only 16% of the companies felt that the market had improved recently, but 40% of the companies thought that there had been fewer orders recently, and 44% of the companies thought that the order situation was similar to the previous period. . June and July are mostly considered by the industry to be the off-season for domestic sales. The initial purchasing pace is probably when orders improve in August, and they start looking for bargain hunting in June or July. Therefore, the industry is not very enthusiastic about early intervention in May. Although it is currently benefiting from Some domestic sales orders have improved, but most of them are short-term orders that do not last long enough, and the start time of export sales is not fixed.

The lack of confidence of chemical fiber factories reflects the current status of the polyester market, especially for polyester filament. Affected by the epidemic, many domestic and foreign orders have stagnated, and demand recovery is difficult. , causing polyester yarn to be unsatisfactory in terms of price, production, sales, and inventory. Judging from the latest news, the spread of the global epidemic is still relatively serious. Brazil, India, and Russia have lost control one after another. The epidemic in the United States is even more complicated, and even the epidemic has begun to spread within the White House.

It can be seen that when demand will return to normal is still unknown, and the chemical fiber market is under great pressure to reverse. </p

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.tradetextile.com/archives/35632

Author: clsrich

 
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