After the Dragon Boat Festival holiday, polyester filament yarn prices rose steeply, supported by the cost side, and continued to hit record highs during the year. This week, it has risen for a consecutive week, and the rise is fierce!
In just 5 days, the prices of various specifications of polyester filament have increased by more than 600 yuan/meter. Since June 1, the prices of polyester filament products of various specifications have increased by 1.5%. Specifically, POY150D rose from 8,470 yuan/ton to 9,200 yuan/ton, an increase of 8.62%; DTY150D rose from 9,850 yuan/ton to 10,500 yuan/ton, an increase of 6.60%; FDY150D rose from 9,025 yuan/ton to 9,700 yuan / ton, an increase of 7.48%.
However, judging from the production and sales of polyester filament this week, the average production and sales level has also increased slightly, at 125.5%, an increase of 57% from last week. As the international oil price exceeded US$120 on Monday, downstream weaving companies, guided by rising buying sentiment, covered their positions in large quantities. In the following days, due to continuous price increases, companies’ resistance to high prices increased, buying sentiment was not high, and production and sales fell back.
In fact, changes in the production and sales of polyester yarns can also be seen from the changes in the mood of downstream weaving companies. A one-day increase in raw material prices is a good thing, which may drive the sale of gray fabrics. However, after rising prices for several days in a row, cost pressure increases and they begin to resist.
01
Prices of some gray fabrics raised for the second time
After the price of raw materials continues to rise, what changes have taken place in the entire downstream weaving gray fabric market? Next we will analyze it from various angles. First of all, looking at the most relevant gray fabric prices, after the Dragon Boat Festival, with the help of crude oil prices exceeding US$120, the downstream market atmosphere was also improved. Some manufacturers immediately issued notices of price increases for gray fabrics, although the increase was only 0.01-0.01- per meter of fabric. 0.05 yuan, but it finally took the first step to increase the price. Subsequently, some manufacturers followed the continuous increase in raw materials and adjusted prices for the second time, and the range was still 0.01-0.05 yuan/meter. There are also manufacturers that have not increased the price of gray fabrics, but have also canceled previous discounts. Generally speaking, the price of gray fabrics has begun to rise, and the days of bottom-line discounts may be gone forever.
02
Weaving manufacturers’ goods sales improved
In terms of gray cloth shipments, after the epidemic gradually improved, the national logistics situation has improved significantly. At the same time, market confidence has recovered, and the gray cloth market has accelerated its shipments. The inventory of gray fabrics in weaving factories dropped rapidly by 0.8 days to 35 days. However, the rising demand cannot support the market for a long time, and the market weakened at the end of May. Until June, international oil prices soared, driving up the prices of chemical fiber products. This rising momentum has boosted the downstream transaction atmosphere, and the delivery speed of gray fabrics has improved slightly again. It is understood that some weaving manufacturers have recently received a large number of shipments, with 2-3 trailers of gray fabrics shipped every day.
03
Weaving manufacturers are still not very enthusiastic about production
Regarding the start-up of weaving factories, boosted by the increase in polyester prices after the Dragon Boat Festival, some fabrics have been slightly hot-selling. Due to the current high polyester prices and limited profits, factories are cautious in accepting orders. The demand from end consumers has not picked up significantly. Due to the lack of substantial order support and the high inventory of cloth merchants, weaving factories dare not increase the load rashly, so the actual increase is not obvious. According to data monitoring from Silkdu.com, the current operating rate of weaving enterprises in Shengze is 66.5%, an increase of 0.5% from last week.
It can be seen from the three aspects of gray cloth price, production and sales, and construction start-up that there are actually contradictions. The contradiction between upstream and downstream, raw materials are soaring, but gray fabrics only make slight adjustments or even remain unchanged. There is a contradiction between production and sales and production. The production and sales of gray fabrics have improved, but the weaving factories are still operating at low load. These contradictions all come from the arrival of the traditional off-season for textile and garment products, which puts pressure on the inventory of gray fabrics and garments in the early stages of the terminal and consumes a lot of funds. Coupled with poor new orders, high raw material prices, and thin profits from gray fabrics, factory production enthusiasm has declined.
Starting from June every year, the textile market will gradually enter the off-season, and weaving factories will also reduce production due to the off-season. After the production reduction, there were no new orders, and the recovery of the startup rate became slower and slower. The overall downstream weaving and printing and dyeing startups showed a narrow decline.
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