New year new life. The Spring Festival holiday of the Year of the Tiger has passed, and textile companies have gradually begun to resume work and production. The editor is also here to wish all textile people a happy old age, and good luck in the Year of the Tiger!
The domestic Spring Festival holiday is full of joy, and the foreign market is also in full swing. The international oil price is a weather vane for the polyester market. While the Chinese people are celebrating the Spring Festival holiday, crude oil prices continue to hit new highs.
Crude oil rises to highest level in seven years
From February 1 to the close of February 7, the price of Brent crude oil rose from US$89.32 per barrel to US$92.95, an increase of 4.1%, and the price of US crude oil rose from US$88.34 per barrel to US$91.62, an increase of 3.7%. Oil prices are currently fluctuating widely, and the strong seven-week rebound has cooled down; Brent crude oil futures have fluctuated sharply, after rising for seven consecutive weeks and reaching the highest level since 2014. The surge in prices is also due to tight supply in the oil market.
In addition, geopolitical tensions are also an important reason for the firmness of oil prices. Recent geopolitical risks are difficult to eliminate and will continue to play an role in oil prices. In addition, from the perspective of supply-side fundamentals, the difficulty of oil-producing countries OPEC+ increasing production is also one of the reasons for the rise in oil prices.
Polyester raw materials get off to a good start
Driven by international oil prices, polyester raw materials have also had a good start since the market opened.
In terms of PTA futures, as of 15:00 on February 7, the main closing price of PTA futures was 580 points, an increase of 342 points or 6.24% from the previous trading day.
In terms of PTA futures, as of 15:00 on February 7, the main closing price of PTA futures was 580 points, an increase of 342 points or 6.24% from the previous trading day.
In terms of ethylene glycol futures, as of 15:00 on February 7, the main closing price of ethylene glycol futures was 5533 points, an increase of 96 points or 1.77% from the previous trading day.
Driven by polyester raw materials, the price of polyester filament has also generally increased by 150-250 yuan/ton:
A factory in Zhejiang raised the price of polyester yarn by 200 yuan on the 8th;
The price of polyester yarn from a major factory in Shaoxing was raised by 150 yuan on the 7th;
The price of polyester yarn from a major factory in Xiaoshan was raised by 200-250 yuan on the 8th;
Another major factory in Zhejiang raised the price of polyester yarn on the 8th
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With the market in full swing, polyester products have surged across the board, giving the polyester market a “good start” in 2022, the Year of the Tiger.
In the short term, PTA and ethylene glycol fluctuate significantly due to oil price fluctuations.
However, as oil prices continue to rise, the United States has relaxed its sanctions on Iran. In order to curb the current high oil prices, releasing Iranian crude oil has become an important way to suppress crude oil prices. Oil prices have fallen by more than 2% since the 8th from a nearly seven-year high, which has brought about downward adjustments in futures prices such as PTA and MEG. The changes in the situation have caused short-term fluctuations in futures, which is normal. Although it has affected market sentiment, the market is still concerned. There are more bullish signals. In addition, Saudi Arabia is also raising oil prices, and due to various factors such as the closure of an oil refinery in the United States, short-term oil prices will continue to fluctuate.
Downstream work has not fully resumed, but gray fabric price increases have hit
Moving to the textile industry, polyester yarn is affected by upstream fluctuations, and production and sales are also ups and downs. This is mainly due to the fact that production has already started but the actual full resumption of work will be around the 15th of the first month, and demand and order placement cannot keep up with the increase in costs. But there are also some companies that already have orders. According to the editor’s visit to investigate the market situation, the boss of a company that specializes in imitation silk said: “At present, most of the orders are from the previous year, and new orders have also been received. Before the market opened, customers came to inquire. Mainly Logistics is not operating normally at the moment, so we have to wait 3-4 days no matter how urgent it is.”
For the current high cost, in order to ensure their own profits, textile companies will actually increase the price of gray fabrics. The boss of the main imitation silk business also said: “Now the gray fabrics have generally increased by 10 cents, and there may be another wave of increases in the future. “The boss of another shop that specializes in satin also said: “As soon as the market opened, old customers came to inquire about orders. Most of the orders in hand are from the previous year. It is not good if the price increases, but it will increase by about 10 cents soon. , otherwise it will be more of a loss.” The price increase of gray fabrics is inevitable.
For textile companies, rising raw material prices have both pros and cons. On the one hand, due to the average market conditions last year, many companies accumulated inventory and raw materials increased. This part of the inventory is also increasing in price, which is also beneficial to the manufacturers who stocked up on silk last year; on the other hand, the increase in raw material prices will also Promote textile companies�Buying silk has aggravated the financial constraints of some weaving companies. In the short term, unless the situation changes significantly, the volatile situation will still exist, and the decline in polyester raw materials may not come soon.
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