The word I hear most recently is probably “rising”. Unfortunately, it’s not the rise in gray fabrics or the rise in fabrics. Now, not only are cars no longer driving, but even No. 92 has entered the 9-yuan era, and raw materials are also going up. The readers are sad and the listeners are in tears. Recently, crude oil has exceeded 115 US dollars per barrel, and it has come and gone at higher levels…
Crude oil keeps rising
The oil prices have soared for several days, causing the prices of various products related to crude oil to follow suit. On May 31, WTI crude oil and Brent futures were also in red all the way. On May 31, WTI crude oil futures exceeded $119/barrel, rising 3.97% during the day. Brent also rose 2.3% on the day.
In the face of the volatile rebound in oil prices, it is still inseparable from the international situation. According to reports, European Council President Michel said on social media that the EU has reached a consensus on the implementation of an oil embargo against Russia, and “will immediately cover one-third of the oil embargo.” 2. EU oil imports from Russia”. The European Commission submitted a proposal for the sixth round of sanctions against Russia, including a complete ban on the import of Russian oil by the end of 2022. And now we are facing summer. The peak driving season has caused the demand for crude oil to continue to rise. Coupled with the tightening of global oil supply and demand fundamentals, crude oil futures prices will inevitably rise all the way.
PTA profits improve
On May 31, the main PTA contract closed at 6846 points, an increase of 1.36% from the previous trading day. As of May 30, the price of PTA was reported at 6,870 yuan/ton, an increase of 460 yuan/ton from the previous month, an increase of 7.18%.
Although PTA’s profits were still in the red for the same period last month, compared with this month, it has overcome the low point and profits are rising slowly. Compared with last week, profits increased by 274 yuan/ton. And currently, the cost-end support is relatively strong, and the PTA processing fee has also been restored to nearly 300 yuan/ton. Although the demand side is still weak for the time being, PTA supply is also declining from time to time. But in the short term, PTA will still fluctuate and run strongly.
Downstream demand still needs to recover
From June 1, Shanghai will fully restore the city’s normal production and living order, and the market will steadily proceed with economic recovery while ensuring that risks are controllable. For the textile market, as long as the epidemic no longer breaks out in spots, demand will likely recover. Although it is inevitable that demand recovery will take time to prove, rising costs remind textile workers every day that profits will be less! At present, we are both in the off-season and facing a recovering market, so orders are naturally rare. The boss of a post-finishing printing company mentioned to the editor: “There hasn’t been much business recently. If you are free, you can pick it up.” The children are out of school.” Moreover, the inability to keep up with the increase in gray fabrics and fabrics further proves that the demand has not returned well yet.
As of May 30, according to the monitoring data of China Silk Capital Network, polyester filament FDY 150D increased by 620 yuan/ton, or 7.4%, from the previous month, with a quoted price of 9,000 yuan/ton; polyester filament POY 150D increased by 730 yuan/ton. tons, with an increase of 9.5%, and the price is 8,430 yuan/ton; polyester filament DTY 150D increased by 650 yuan/ton, or 7.06%, with a price of 9,850 yuan/ton.
However, polyester filament manufacturers feel that the entire market is developing for the better, and they cannot bear the situation of high costs, high inventory, low production and sales, and precarious profits. Therefore, on May 31, some polyester manufacturers announced another There was a brief promotion, and the price dropped by about 50-100 yuan/ton. This was followed by another price increase in the afternoon. Faced with the rise in polyester yarn driven by the continued rise in oil prices, downstream companies also chose to focus on covering their positions. On May 31, manufacturers with good production and sales also reached a production and sales volume of up to 350%, and the overall production and sales rate was around 117%. The overall market is still relying on cost support to continue to increase prices. As for when the downstream industry will get considerable orders, no one can say for sure.
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