On the eighth day of the first lunar month, textile markets all over the country routinely open to the sound of firecrackers. Yesterday morning, merchants at the China Oriental Silk Market in Shengze opened their doors one after another, setting off firecrackers to celebrate the opening of the market and pray for prosperous business in the new year.
Compared with the downstream weaving market, although the polyester factory lacks some festive and lively atmosphere, the market is still “exciting” when it starts, and there are signs of a good start!
On the first working day after the holiday, the polyester market rose steadily: the PTA supplier’s offer increased by 50 yuan/ton, and the spot transaction was around 5,610 yuan/ton. MEG focused on sorting out, with spot discussions around 8250-8300 yuan/ton. The external market rose slightly in the afternoon, with bids around 970.
Supported by rising crude oil and polyester raw materials, the quotations of some products from mainstream polyester factories in Jiangsu and Zhejiang have also increased accordingly, with POY leading the increase. For example, the buyout price of Rongsheng POY has increased by 300, and some specifications of DTY and FDY have increased by 100; Shuangtu Pu rose by 200; Tianyuan POY rose by 100, DTY stabilized; Yifeng rose by 100-200; Xinmin rose by 100-200; Hengyi DTY rose by 200-300, FDY rose by 50-100…
The author believes that the polyester and polyester market was able to get off to a good start on the first day mainly based on the following two factors:
1. The supply of polyester yarn is still tight, and polyester factories are optimistic about their quotations
Thanks to the previous waves of stocking, polyester factory inventories are at a low level, with POY ranging from 4 to 7 days, FDY ranging from 6 to 9 days, and DTY ranging from 9 to 20 days. Even though the intensity of equipment maintenance during the Spring Festival this year was much less than in previous years, the accumulated inventory did not put any pressure on the company.
Moreover, judging from the export situation and corporate orders, the production situation is still very good. Many chemical fiber companies are optimistic about the market conditions, which also inspires their confidence to work hard in the New Year. For example, leading companies in the chemical fiber industry such as Shenghong, Hengli, Yingxiang, Tiansheng, Nanfang, and Far East all chose not to suspend production during the Spring Festival. Of course, in addition to the continuity of production equipment, good sales are also a key factor.
2. Weaving fabric companies have good orders after the holiday, and demand is gradually released
Generally speaking, downstream weaving and fabric companies in various industrial clusters will gradually resume production and sales after the eighth day of the new year. Affected by the general improvement in the market in the fourth quarter of last year, the entire industry is highly motivated to start operations this year. Many weaving companies said that judging from the current order volume on hand, the market is not expected to be bad this year. Therefore, after the workers are in place after the holiday, they will seize the time to rush the orders.
Although the downstream market is still recovering, some textile companies have shown a certain willingness to purchase. In the absence of complete recovery of logistics, the production and sales of mainstream manufacturers in Jiangsu and Zhejiang yesterday were concentrated at 70-90%. This data is for first-day sales. The situation is already good.
All in all, both the weaving market and the chemical fiber market have turned a new page amidst the sound of firecrackers on the eighth day of the Lunar New Year. Although the market got off to a good start on the first day after the festival as promised, it may take a few more days to see whether such good signs can continue throughout the “Red February” until the actual “market opening” around the Lantern Festival.
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