This week, four polyester companies dominated the Fortune Global 500, Vietnam became the world’s second largest exporter of textiles and clothing, crude oil and polyester both fell, and the Delta virus spread around the world…
Let’s take a look at what’s new this week!
Crude oil and polyester “both fell”
The unexpected increase in U.S. crude oil inventories has coupled with market concerns about the reduction in global energy demand caused by the spread of the Delta variant virus. The international crude oil market has recently been declining. Entering a downward trajectory, U.S. oil once again fell below the $70/barrel mark.
Secondly, polyester filament, which had soared in the early stage, has recently put down its arrogant attitude, ended the continuous price increase, and began to return to the weekly price reduction promotions from April to June. On Thursday, many polyester raw material manufacturers in Jiangsu and Zhejiang clearly lowered their raw material prices by 50-100 yuan/ton.
The editor has something to say: The falling price of crude oil will inevitably affect the growth of PTA. If it continues to fall in the future, the price of PTA will also fall. Polyester yarn is now in price reduction mode and will be affected by the price in the future. Frequent promotions will also occur due to the impact of crude oil and PTA.
Vietnam has become the world’s second largest exporter of textiles and clothing
On August 2, citing the 2021 version of world trade statistics released by the World Trade Organization, Vietnam has surpassed Bangladesh and become the world’s second largest exporter of textiles and clothing. .
Vietnam News Agency’s reporter in Germany reported that Vietnam’s textile and clothing exports reached US$29 billion in 2020, a year-on-year increase of 6.4%. Over the past decade, Vietnam’s share of textile and apparel exports in the world has continued to increase. In contrast, Bangladesh’s textile and apparel production dropped year-on-year in 2020, from 6.8% to 6.3%. This means that Vietnam has surpassed Bangladesh and become the world’s second largest exporter of textiles and clothing after China.
The editor has something to say: Vietnam has become the world’s second largest textile exporter, which is also a very big challenge for China. The competition will be even greater in the future!
Four polyester companies dominate the Fortune Global 500
On August 2, “Fortune” magazine announced the 2021 Fortune 500 list. A total of 143 Chinese companies were on the list. , ranking first in the number of companies on the list for the second consecutive year. In the chemical fiber industry, Hengli Group Co., Ltd. ranked 67th on the list with an operating income of US$100,773.1 million, ranking first among textile and chemical fiber companies, and its ranking increased from last year Zhejiang Rongsheng Holding Group Co., Ltd. and Zhejiang Hengyi Group Co., Ltd. entered the list for the first time; Shenghong Group quickly climbed to 311th place from the 455th place on the list for the first time last year, jumping 144 places in one year.
Although the COVID-19 epidemic in 2020 has brought difficulties to business operations, the average sales revenue and average profits of Chinese companies on the list are basically the same as those of the previous year. At the same time, due to their rapid recovery from the epidemic, Chinese companies entering the 2021 rankings not only have an expanded numerical advantage, but their business operations have also improved in horizontal comparisons.
The editor has something to say: For chemical fiber companies, the Top 500 is a label of their own strength and a new starting point for further steady development.
Delta virus spreads around the world
Data show that the United States, Indonesia, India, Brazil, and Iran are the five countries with the largest number of newly confirmed cases. The total number of global COVID-19 cases climbed to more than 194.7 million on Tuesday, while the death toll climbed to more than 4.16 million, according to statistics from Johns Hopkins University. The United States leads the world with a total of 34.5 million cases and 61,007 deaths, as the highly contagious Delta virus continues to spread rapidly, especially in states with low vaccination rates. India ranks second with 31.4 million cases and third with 421,382 deaths. Brazil ranks second with 550,502 deaths and third with 19.7 million cases. Other countries with severe cases and deaths include Mexico and Russia, ranking fourth and fifth respectively.
The editor has something to say: At present, it is more of a blow to market sentiment. The textile market is more sensitive to the development of the epidemic, especially when the epidemic worsens and new travel restrictions have suppressed consumption in some countries. Regardless of domestic and foreign markets, the demand for clothing fabrics has weakened.
Market Review
Polyester: Under the influence of the current epidemic, epidemic prevention policies have tightened, Restrictions on logistics have significantly suppressed the demand for PTA. During the phased decline of PTA, attention should be paid to the profit expansion position of PF-PTA. In addition, due to the slower pace of crude oil import quota issuance than in previous years, limited supply of raw material PX, and unstable operation of new PTA equipment, attention is paid to the position of PTA-crude oil profit expansion. At present, the mainstream quotation of PTA is 5200-5280 yuan/ton. It is expected that the price of PTA will mainly fluctuate in recent days.
In terms of polyester filament, due to the intensification of the domestic epidemic, terminal enterprises have lacked confidence, and the frequency of new orders and inquiries has been slow. However, foreign trade shipping costs are easy to rise but difficult to fall, and export problems have worsened. Downstream Gray fabric factories are really suffering, with capital constraints coupled with a lack of workers, and gray fabric inventories at high levels. Therefore, most downstream customers continue to wait and see. Affected by the continued poor demand performance, it is difficult for polyester filament to achieve real growth, but costs are still supported. The poor profit performance of front spinning, especially FDY, will also support market prices. The market is expected to fluctuate within a narrow range next week. The trend is mainly weak.
In terms of profit, PX’s loss this week narrowed slightly compared with last week, and its loss space currently reaches US$106/ton. As for PTA, its profit decreased this week, and its profit is currently around 141 yuan/ton. In terms of ethylene glycol, the loss has expanded this week, and the current loss is US$13/ton. In terms of polyester filament, polyester prices fell overall this week, but due to cost reductions, profits varied; FDY profits shrank to 13 yuan/ton; POY 150D profits rebounded, with current profits of 282 yuan/ton; DTY 150D profits expanded, currently The profit is 138 yuan/ton.
In terms of operating rate, the average weekly operating rate of PTA this week is concentrated at 63.9%, down 5% from last week; the real-time operating rate is 65.7%, The real-time effective operating rate is 72.6%. In terms of polyester, the average polyester load this week was concentrated at 91%, falling slightly. In terms of weaving, the recent weaving operating rate has dropped to around 74%.
In terms of production and sales, the overall transaction atmosphere of polyester yarn in the market this week is generally average, and the overall price of polyester yarn is mainly stable. At the same time, due to In the off-season, the downstream market is mostly wait-and-see, with weak purchasing enthusiasm. The overall performance of polyester production and sales is average. Although some manufacturers have reduced prices, except for a few occasions when the price can reach 100%, the overall production and sales are only about 30-40%.
In terms of inventory, from the statistical data of China Silk City Network, the overall inventory of the polyester market is now concentrated in 17- 27 days; in terms of specific products, POY inventory lasts until 14-23 days, FDY inventory lasts around 17-19 days, and DTY inventory lasts around 20-29 days.
Weaving: It can be seen from the Shengze Index of the Ministry of Commerce that as the off-season market gradually deepens, the textile market in the recent stage The transaction atmosphere is generally average, and downstream fabric orders are relatively lacking. In addition, the raw material market has become loose this week, and the prices of some polyester products have gradually adjusted back. However, the price of spandex is still rising, rising by 1,500 yuan/ton compared with last week. High raw material prices have led to a significant increase in production costs for downstream weaving companies. Orders for four-way stretch fabrics have begun to decrease slightly. At the same time, it is difficult to increase fabric prices. At present, the weaving operating rate in Shengze area has dropped back to about 74%; in addition, with the poor supply of goods in the market, the overall gray fabric inventory has also begun to rise slightly to about 39.3 days.
Printing and dyeing: The activity of the printing and dyeing market dropped again this week, and the number of gray fabric dyeing dropped from last week. The quantity of gray cloth entering the warehouse decreased slightly, and the operating rate remained at 68%. Most dyeing factories have an operating capacity of around 70%, a few dyeing factories with a lower operating load have an operating capacity of only 50-60%, and a few have an operating rate of less than 50%.
Since it is still the traditional textile season, the order situation of dyeing factories has not changed much compared with the previous period. The follow-up of new orders is slightly weak, and some workshop machines are not started up enough. Coupled with the impact of high temperatures, workers take more leave and there is insufficient labor, resulting in low operating rates.
In terms of products, autumn and winter fabrics such as elastic fabric, nylon and pongee are still the main products, while other fabrics lack highlights. In terms of delivery time, some factories are still limiting production, and the overall delivery time is about 7 days.
Outlook
This week, the global epidemic has spread again, and the prices of crude oil and polyester yarn have fallen one after another. Market expectations are very different from the previous period, and downstream buying momentum is insufficient. Polyester yarn prices may be on sale next week…</p
