The market has been speculating, to what extent will the price of polyester filament drop before the downstream will be happy to buy it?
In the past two days, the early bad news about polyester filament seems to be gradually being released! Not only was the long-lost FDY industry conference held, but the cost of upstream polyester raw materials rebounded strongly, and the production and sales of polyester manufacturers themselves soared.
However, everything seems to be good, but polyester filament manufacturers have not taken advantage of the situation to rebound as usual; amidst various doubts that “prices are rising everywhere, only polyester yarn is the worst”, they still go in the opposite direction and continue to Lower prices. One has to ask: What happened to the market?
The Polyester Alliance meeting was held, polyester filament fell!
Since the beginning of this year, whether the market is good or bad, POY market seminars have been held many times. FDY manufacturers are keeping a low profile. It is reported that on the 9th, the market finally ushered in the long-awaited FDY industry joint meeting.
However, the Polyester Joint Conference, which once had absolute say, whether it is the POY Alliance with a high concentration of production capacity, or the slightly different FDY Conference, has not produced a good improvement on the polyester market as expected in the recent stage. The vibration effect has failed to stop the continuous decline of polyester filament.
Polyester production and sales rose rapidly, while polyester filament fell!
Under the price reduction promotion for many days in a row, the production and sales of mainstream polyester manufacturers have also risen linearly in the past two days, breaking the predicament that the production and sales in the early stage were difficult to break through. On the 8th, the mainstream production and sales of polyester were concentrated around 100-110%. On the 9th, the production and sales surged strongly. The average production and sales were concentrated at 160%-170%. The production and sales of some manufacturers reached 200%, 310%, 340%, 300%, 500%.
Even so, the quotations of some polyester filament manufacturers continued to fall on the 10th. For example, the quotations of a mainstream polyester factory in Zhejiang market were lowered. Now its semi-gloss FDY20D-50D dropped by 300 yuan/ton, 54D-100D dropped by 200 yuan/ton, and 500D -600D fell by 100 yuan/ton; Youguang FDY50D-55D fell by 300 yuan/ton, 66D-75D fell by 200 yuan/ton, 89D-108D fell by 100 yuan/ton; DTY 50D remained unchanged, and the rest fell by 100 yuan/ton. The quotation price of a mainstream polyester yarn factory in Tongxiang market fell by 100 yuan/ton…
Whether polyester manufacturers are really continuing to lower prices due to inventory considerations; or do they want to risk their lives and raise prices for a better market outlook? Regardless of the purpose, with the launch of the fourth batch of central environmental protection inspection actions, may the wishful thinking of polyester manufacturers come to nothing?
This year, the environmental protection storm has swept through the entire textile industry, especially the environmental protection trend in the water-jet loom market has become more and more intense!
On the 9th, new news of production suspension came from the market: Due to environmental protection, Shaoxing water-jet looms will be fully shut down starting from August 11, and are expected to resume at the end of August. There are about 5,000 water-jet looms in the local area, mainly concentrated in Xialu Town!
However, just one day later, on the 10th, it was reported that Shengze, Wujiang District, Suzhou issued a law enforcement notice that all water-jet loom companies in Zhuangping Village would limit production by 50%. Starting from the 11th, all water-jet loom companies would implement a three-day shutdown.
According to industry insiders, 377 dyeing and weaving factories in Zhejiang will close, 140 will be relocated, 54 will sign relocation agreements, and 1,631 will cut off power; 2,577 “three noes” enterprises will all close next month. Although it is understood that the specific number of enterprises mentioned above has yet to be investigated, it is clear that with the continuous deepening of environmental protection rectification, a large number of textile enterprises will indeed face the fate of being sealed, shut down, and eliminated.
Such a significant reduction in production and suspension of downstream looms will undoubtedly reduce the downstream market’s demand for raw materials. We can only wait and see how the market outlook will unfold due to demand fluctuations under the high pressure of environmental protection.
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