On March 8, polyester filament manufacturers mainly showed a downward trend; among them, Rongsheng’s quotation fell by 100-250 yuan/ton, Wuchangpu fell by 100 yuan/ton, Xinmin fell by 100 yuan/ton, and Kaishi’s price dropped by 100 yuan/ton. -200 yuan/ton, Jiabaopu fell 100 yuan/ton.
On March 9, affected by the decline in raw materials, polyester factory quotations continued to fall, with some POY manufacturers falling by 200 yuan/ton; Tongkunpu fell by 200 yuan/ton, Xinfengmingpu fell by 200 yuan/ton, and 100 million yuan fell. The price of Feng Feng fell by 100 yuan/ton, the price of ancient fiber road fell by 100 yuan/ton, the price of Far East fell by 100 yuan/ton, and the price of Shuangtu POY/FDY fell by 200 yuan/ton. There will be further discounts in appropriate quantities.
On March 10, the mainstream POY price of polyester filament factories dropped by 200 yuan/ton, and the FDY price dropped by 100-200 yuan/ton.
During March 11-12, the decline of polyester manufacturers continued, with mainstream manufacturers lowering their quotations by around 100-400 yuan/ton.
As of March 13, the polyester filament market is still in a downward trend, and mainstream manufacturers have room for price reductions of about 100-400 yuan/ton.
…….
March is the traditional peak textile season. With good expectations in the early stage, the polyester market should have been full of “spring” and a scene of spring flowers blooming! However, the market unexpectedly opened a downward channel, and the polyester “Shangxian” polyester filament market was unprepared for a crazy downward “catastrophe”.
Although polyester filament yarns have been experiencing transaction discounts and slight price adjustments since late February, the overall performance has been relatively stable; and since March 8, under the negative influence of all parties, polyester filament yarns have really been falling. Going further and further on the road, it has gone through nearly a week of “tribulation”, recording the largest decline of the year.
International oil prices not only fell below the US$50 mark, but also hit a new low since December 2016
The first thing to bear the brunt is the sharp fall in international oil prices, which has the tendency of “falling thousands of miles”. Especially at the close of the 8th, New York oil prices plummeted by more than 5%; in the market, there are negative concerns about supply and demand and the surge in U.S. crude oil inventories and other factors. Due to the suppression, international oil prices fell further, with a cumulative decline of more than 9%, hitting a new low since December 2016. As of the close of trading on the 10th, WTI crude oil futures fell to US$48.49/barrel, falling below the US$50 mark for the first time this year; Brent crude oil futures fell to US$51.37/barrel; the increase in international oil prices after OPEC reached an agreement to reduce production was almost flattened .
Futures fell by the limit, and PTA spot prices also fell simultaneously
PTA is also facing a falling crisis, especially the futures side. On the 8th, the main 1705 contract of Zhengzhou Commercial Exchange PTA futures closed sharply at 5,398 yuan/ton, a significant decrease of 3.26%; and on the 9th, the cargo side even opened. It soon fell to the limit, and finally closed at the lower limit of 5,214 yuan/ton. Compared with the settlement price on the previous trading day, it dropped significantly by 276 yuan/ton, or 5.03%. Subsequently, the futures continued to close in decline. Under this suppression, the PTA spot market also plummeted; currently, the transaction volume in the internal market has dropped to around 5,000-5,030 yuan/ton.
As international oil prices weaken and fall, the market prices of upstream raw materials PX and PTA fall, which also means that the cost of upstream raw materials has a greater suppressive effect on polyester filament; however, the most critical thing is that under such a situation, downstream weaving manufacturers have The enthusiasm for purchasing raw materials has been significantly weakened.
With the continuous decline of polyester filament, most downstream weaving manufacturers have a mentality of “buying up, not buying down”, and are more cautious in purchasing, and the market has a strong wait-and-see atmosphere. It is easy to see from the above figure that the overall production and sales of the polyester filament market have been unsatisfactory in recent days. It is reported that the production and sales of mainstream manufacturers are mostly concentrated at around 30-50%, and the better ones are only at the 60-70% level. I think It is even more difficult to be equal. With the overall market production and sales weakening, the inventory pressure of mainstream polyester filament manufacturers has further increased.
It is rumored that the immortal can ascend to become a god after undergoing a tribulation. However, after experiencing this round of disaster, whether the polyester filament market can open up a new situation and truly usher in the peak season still needs to be considered by the market; in the final analysis, it still depends on whether the demand in the downstream weaving market can truly open up.
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