The “Golden Nine” in 2020 has arrived as scheduled, but the terminal demand for polyester filament has not improved. Most downstream companies began to increase autumn and winter orders in mid-August, and the weaving start-up rate gradually increased, but the follow-up of downstream orders continued. Insufficient, and the overall order quantity is lower than in previous years. Weak downstream demand has caused the overall polyester filament market to show a volatile and weak trend. However, when the Golden Nine peak season is not prosperous, the overall profit of the polyester industry is low.
Profit losses stimulated, holiday polyester companies released rising signals
“As long as Whenever the price of polyester filament fluctuates, it will arouse the purchasing sentiment of downstream weaving manufacturers or traders, and the production and sales of polyester will explode.” Once upon a time, this law was broken, and the downstream market gradually became indifferent. Especially since August, there have been only a handful of situations where polyester production and sales have exceeded 100%, and mainstream production and sales can only maintain around 50% to 80% most of the time.
It has been more than half a month since the last wave of production and sales surged. Finally, in recent days, as polyester factories have limited production and raised prices and stocking up before the National Day, it has stimulated downstream purchasing sentiment to heat up, and polyester production and sales have increased significantly. The trading atmosphere in the polyester filament market in Jiangsu and Zhejiang has improved, and some manufacturers have concentrated on increasing their sales. ;According to statistics, the production and sales of mainstream polyester factories have surged by around 160%-180%, with some higher production and sales reaching 300%.
There is still a fierce competition between supply and demand and cost, and the polyester market may be booming!
Although the price of polyester filament is now increased in exchange for procurement, the current prospect of polyester filament is not optimistic. In addition to inventory problems, the cost support of polyester filament is related to the downstream weaving situation. Changes in demand are also a very big problem.
The main raw materials of polyester filament are PTA and MEG. As far as the current situation is concerned, PTA has an important impact on the price of polyester filament. The impact is greater, but unfortunately, starting from the second half of this year, the originally “high-spirited” PTA has gradually fallen into a rather embarrassing situation. Polyester raw materials have been subject to inventory pressure, and the cost support is hardly optimistic. Polyester factories have to carry out preferential promotions under inventory pressure, which further intensifies the cash flow losses of polyester filament. In the recent stage, yesterday’s polyester market Stable operation has begun. Except for some textile companies that are in urgent demand and have replenishment operations, most manufacturers still choose to wait and see cautiously.
At present, the price of polyester yarn has once again fallen to near the previous low, and there is not much room for the price to fall further. However, industry players are still worried and are looking forward to the market recovery. Each factory has a greater intention to raise prices or increase prices. . But if the current market wants to rise, either the downstream terminal demand will improve, or the upstream support force will be strong enough. But judging from the current situation, the impact of downstream terminal demand is the key factor that determines whether prices can continue to rise.
This year, the inventory problem of gray fabrics has become the biggest concern for weaving companies. There are too many inventories, and goods are constantly being sold out on the market. The prices and profits of gray fabrics have been cut in half. For weaving enterprises, the excessively high inventory of gray fabrics occupies too much of the company’s working capital. These fabrics cannot be sold and cannot be converted into cash. By the end of the year, it will be difficult to come up with enough money to buy raw materials. In addition, there is the issue of receivables. Due to the slump in terminal clothing sales and foreign trade exports, the receivables situation of the textile industry this year is the worst in recent years, and it is also a “long-standing problem” for weaving companies to collect receivables during the New Year.
The second outbreak of the foreign epidemic has put orders at risk of being canceled at any time, making it difficult for the foreign trade market to recover. However, new orders in the domestic market have significantly decreased, making it difficult for demand to improve. In addition, before the National Day holiday, , some downstream factories have holiday plans, and the short-term demand for polyester filament will be further reduced.
The tepid market in September may continue until October. Facing the “Silver Ten”, this year’s market has made everyone lose confidence in bargain hunting. With one blow after another, purchasing has become more cautious. , coupled with the slow global economic recovery caused by the epidemic, now everyone is fighting for funds, strength, and how to “survive”. Many industry players are pessimistic, and the polyester filament market may usher in a long winter ahead of schedule</p
