With the effective control of the new coronavirus in China, there were 6 new confirmed cases outside Hubei on March 3, single digits for 4 consecutive days. This also proves from the side that the impact of the epidemic is gradually weakening. In the later stages of the epidemic, What is the current situation of the polyester shorts market?
1. Introduction to the epidemic
The new coronavirus epidemic is fierce and highly contagious. In order to control the spread of the epidemic, the country has delayed the resumption of work and suspended logistics. Directly affected the operation of the chemical fiber industry. However, as the number of confirmed cases outside Hubei gradually decreases, downstream work resumes, and logistics resumes, this also proves from the side that the impact of the epidemic is gradually weakening, and the polyester staple fiber market will gradually return to normal operation.
2. The impact of the epidemic on staple fibers
According to previous years’ practice, the polyester staple industry will have nearly 30% to 40% of the demand during the Spring Festival. Most of the equipment will be shut down for maintenance and normal production will resume around the 15th day of the first lunar month. However, due to the impact of the epidemic this year, not only did the production not start as scheduled after the holiday, there are still companies that continue to reduce the start of production. The main reason is that workers in the polyester staple factory are unable to return to work on time, logistics inside and outside the province is restricted, and downstream operations are insufficient, which makes it difficult to increase demand. Until now, some polyester staple factories have not resumed operation or are operating at a reduced load. Factories The inventory pressure is evident.
Although the polyester staple market shipments improved slightly in mid-to-late February, most of them were traders taking advantage of low prices to stock up, and the performance of downstream yarn mills was average. Although the domestic epidemic has been effectively suppressed, the actual demand is still low due to insufficient support from the raw material polyester staple fiber and the slow arrival of weaving factory workers. Under the epidemic situation, the market mentality is at a loss. Most of the middle and lower reaches are basically waiting and watching. It is difficult to support their mentality and the market volume is basically small. Therefore, the pure polyester yarn market has a strong wait-and-see atmosphere. The overall market is not good. The prices are stable and falling. Now in Jiangsu and Zhejiang The mainstream price of 32S in the region is about 11,200 yuan/ton, and the mainstream price of 32S Sinochem is about 10,600 yuan/ton. Pure polyester yarn manufacturers said that the market is still unclear and they mainly adopt a wait-and-see attitude.
3. How will the polyester shorts industry develop after the epidemic?
We are currently in a critical period of domestic epidemic control, and the progress of resumption of work is still lower than expected. On the one hand, there are risks in the company’s management and control of the health of its own employees, and on the other hand, the logistics is not smooth, which affects the company’s procurement of raw materials and Sales of products. Therefore, the entire industry chain must be carried out simultaneously upstream and downstream. Any delay in the resumption of work in any link will affect the resumption progress of the entire industry chain. As the country’s epidemic control is gradually relaxed, the recovery speed of the polyester staple market will also accelerate, but destocking will still be the main focus in the first half of March, and the market may improve in the second half of March. </p
