It is now the ordering and proofing season in August, and the textile and chemical fiber market is experiencing considerable fluctuations before the peak season.
Recently, the textile market has ushered in a new round of orderly electricity consumption in the industry, and most chemical fiber weaving companies have also received notices of peak power rationing. The chemical fiber weaving industry chain has ushered in a collective collapse. Whether it is polyester filament, texturing, weaving, printing and dyeing, they are all in a downward process. The recent sustained deep decline in crude oil has triggered a series of reactions in the polyester industry chain, making the already sluggish polyester market even worse. The bear market in the polyester market does not seem to have bottomed out yet.
Two joint production cuts of polyester
Still no match for the cliff-like start-up downstream
This year, due to the impact of insufficient consumption of textiles and clothing, hot weather, and power cuts, the operating rate of polyester terminal looms has remained at the low level of the same period in the past 10 years. Polyester factories have jointly reduced production and load twice this year in May and July, in order to Respond to weak consumer demand. Polyester factories try to reduce inventory by reducing operating rates. What is the effect? The effect is not very obvious. Filament stock has increased instead of falling. Compared with the accumulated stock in August, this is just a drop in the bucket.
In mid-August, the domestic polyester start-up load only maintained at 77.8%. However, even if the start-up is lower than in previous years, it is still no match for the competition from the downstream. The start-up of weaving is even worse. Since the beginning of 2022, the start-up rate of downstream looms has been All showed a downward trend, with the highest decline occurring in air-jet loom companies, with a decline of 35.50%. After the beginning of the year, orders from air-jet loom companies were clearly differentiated. Most companies received orders at the end of the year that continued production after the year, so the overall industry start-up rate was Supported by the support of other companies, although the number of large orders is low, some companies have placed small orders and bulk orders, so the industry’s production is still busy. However, as market orders are gradually delivered, the superimposed terminal market is weak, and the start-up rate has dropped rapidly. . Water jet, circular knitting machines and warp knitting machines are also facing serious orders. The spread of the epidemic in many places has led to a decrease in purchasing intensity. Economic recovery will take time to buffer. Most residents choose to purchase daily necessities, textiles and clothing, etc. to reduce corresponding expenditures. Most downstream The operating rates of weaving enterprises are between 40% and 60%, and the average decline rate is between 10% and 34% compared with previous years.
With the power cuts, the weaving operating load dropped again to 47.91%. Among them, the operating rate of water-jet looms in Wujiang area is 55.05%; the operating rate of water-jet looms in Changxing area is 47.25%; while the operating rate of circular looms in Xiaoshao area is only 38.99%; the loom load of warp knitting factories in Haining area is 46.15%; and the operating rate of water-jet looms in Changshu area is 46.15%. The start-up load of the knitting factory dropped to 40.23%.
Currently, as it is still the off-season for textile and apparel consumption, most major polyester factories are maintaining production cuts. Changes in the start-up of some small polyester devices have limited impact, and it is difficult to significantly increase the overall polyester operating rate. With the decline in elasticity rates in Xiaoshao, Ningbo and other regions, the weakening demand has led to the weakening of polyester filament market prices.
The market is hard to see busy traffic, and the weaving industry is flat with no production.
Will demand come in September?
As far as the textile industry is concerned, what is currently being felt is a slight chill. When visiting the gathering places of the textile industry, the bustling scene in the market has disappeared, and some companies have even stopped producing. Today’s market really confirms the old saying “Thirty years in Hedong and thirty years in Hexi”: Compared with last year, this year’s market can only be described as cool.
The current survival situation of textile enterprises is still that supply exceeds demand. In the past two years, the amount eliminated by the country has basically not kept pace with the increase in production capacity. Therefore, without any particularly positive boost, the overall situation is gradually taking shape, and market panic has emerged. Manufacturers have obvious intentions of destocking in order to reduce inventory. Traders are being caught off guard, and profits continue to shrink…
In today’s sluggish market, small and medium-sized enterprises are rushing to destock and ship goods. Market prices are falling frequently, and weaving manufacturers are unbearable. Can they have the last laugh in this cold winter? Ultimately it depends on whether the supply and demand issue can be resolved smoothly.
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