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Electricity consumption may “shift peaks and fill valleys”, and polyester yarns are at risk of decline

[Introduction]: High temperatures in summer and increased electricity consumption by residents have led to overall tight power supply. Jiangsu, Zhejiang and other regions have succ…

[Introduction]: High temperatures in summer and increased electricity consumption by residents have led to overall tight power supply. Jiangsu, Zhejiang and other regions have successively carried out work to prepare for the summer. Relevant departments have recently issued a notice to carry out peak shifting and valley filling work to meet the summer peak.

As the temperature gradually rises, the “power rationing” policy has been affecting people’s hearts. Recently, some areas in Jiangsu and Zhejiang received notices from relevant departments. Specifically, a small number of enterprises have received specific measures to use electricity. For example, enterprises are required to stop all production and use of electricity from 10:00 to 11:00 am and 2:00 pm to 3:00 pm on Monday, July 10, and only non-productive electricity is allowed to be retained. Security electricity consumption; or high energy-consuming industries are required to start 6 times and stop 3 times to reduce load operation. Enterprises in many regions said that this year’s power restriction policy is relatively mild. High-energy-consuming industries have spontaneously planned production reductions and power usage arrangements, and staggered peak power consumption. A small number of regions have said that they have only received notices of orderly power use and have not actually implemented it. standard. According to research by Longzhong Information, currently the production load of polyester filament production companies has not been affected by the power restriction policy, and the operating rate of texturing production companies has dropped slightly compared with June. However, the load reduction is mostly due to tight capital chains and reduced orders. .

Source: Longzhong Information

At present, many areas in Jiangsu and Zhejiang have high temperatures and long standby times, and residents’ electricity load continues to grow, which may affect power distribution in the future. We do not rule out peak shifting or start-up restrictions for high energy-consuming industries in the future. In addition, since Xiaoshan, Shaoxing, Huzhou and other regions in Zhejiang are host cities for the Asian Games, some companies in the Yaqian area of ​​Xiaoshan have currently heard requests to reduce suspensions. The specific requirements will be implemented in accordance with the notices from relevant departments. Longzhong will continue to follow up and report.

Source: Longzhong Information

At present, the cost side has strong support. Polyester filament yarn started to rebound in July, and the inventory level of polyester filament yarn companies is low after multiple promotions at the end of June. As the cost of polymerization continues to rise, the cash flow of most models of polyester filament yarn is compressed. , companies are reluctant to sell at low prices, and the focus of market transactions is gradually rising. In comparison, the current negotiated price is much higher than at the beginning of the epidemic, but the market is still at a lower price compared with the same period last year. Last year, the average annual profit and loss of most companies varied. This year, most companies focus on repairing profits. Therefore, with the help of high costs and low inventory, polyester filament prices fluctuated and rose in July.

At this stage, the overall polyester production capacity utilization rate is relatively high. For polyester raw materials, the overall supply and demand are better than expected. Driven by macro news, polyester raw materials are still expected to increase in the short term, which will give certain benefits to the polyester filament market. support. At this stage, there are frequent news of power rationing, which is expected to affect the operation of downstream texturing, weaving and even printing and dyeing industries to a certain extent. In addition, companies are facing many problems such as financial constraints, order shortages, profit compression, etc., and production enthusiasm has declined. Therefore, in the reality of weak demand , the polyester filament market has a difficult upward road. Overall, it is expected that the impact on the cost side will be more critical in the first half of the year. The polyester filament market may follow the rise of raw materials. As the inventory pressure of enterprises gradually increases, the impact of supply and demand in the second half of the year will become more prominent, and the market will be at risk of decline. .

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Author: clsrich