Crude Oil Prices Continue To Fall, Shoe And Clothing Enterprises Cost Pressures To Ease

"Apart from being an energy source, crude oil is also the basic raw material for chemical products. The fall in international oil prices will affect the mentality of the investors concerned, leading to a chain reaction, which will eventually benefit the industry at the end of the industry. Affected by the sharp drop in international crude oil futures prices, basic chemical products such as ethylene, rubber, methanol and so on showed a downward trend, and the transmission through price also brought space for reducing the cost of the local shoe and clothing industry.

　　 The cost of basic chemical raw materials has dropped sharply.

The decline in crude oil has lowered the price of naphtha and PX, resulting in a decline in the price of naphtha and oil. Textile and clothing The collapse of the PTA cost of the main raw material of polyester fibers has collapsed. At present, the price decline of naphtha is continuing as crude oil prices fall and market demand shrinks. From the data, the price of naphtha dropped by more than 30% from the beginning of September to the beginning of December. As the basic chemical raw material of synthetic fiber, ethylene prices are relatively strong, but in November, it was finally difficult to resist pressure and plummeted. In November alone, ethylene fell more than 60 US dollars / ton, or about 5%.

At the same time, ethylene is also the main raw material for synthetic rubber and synthetic plastics. The decline in crude oil prices reduces the production cost of synthetic plastics. The fall in crude prices has reduced the cost and price of synthetic rubber, and pushed down the price of natural rubber.

The upstream raw materials are hard to change, the cost side price collapses, and the deep contradiction of global supply and demand pattern has laid a weak pattern of crude oil. "The prices of basic chemical raw materials such as naphtha and ethylene have continued to decline, but downstream factories are still losing money and demand is sluggish. Industry veteran Zhu Chunkai said.

　　 Chemical products prices dive in succession

Basic chemical raw materials prices continue to decline, downstream chemical products also gradually feel the upper reaches of the cold. "The distance between downstream products is far away, and there is a process of conduction, which shows the lag period of time, but it must have an impact and has a great impact." Quanzhou chemical and Chemical Industry Association said that the degree of marketization of domestic crude oil and chemical products is not high enough, the international crude oil prices for domestic plastics, rubber, Polyester The transmission of prices of other related products usually lags behind.

It is reported that the trend of rubber has been blocked by this round of market. "Synthetic rubber is greatly affected by crude oil. The rubber industry is one of the four basic industries in China. When the price of crude oil has just started to fall, there has been a collective rise in the market profit, but when the market accepts the low price of crude oil, the price of rubber also shows a downward trend." The foregoing said.

Not only that, natural rubber will also be affected, because international commodities are the weathervane of other commodities, crude oil, iron ore and other basic commodities have shown the trend of capital, so the commodities with capital attributes must look at the face of these basic commodities.

Reporters recently visited a number of shoe materials enterprises in Jinjiang, also learned that, in December, the market butadiene rubber market downturn, the price down process, the price below the cost of the hang up phenomenon has emerged, and has further aggravated trend, however, the market access did not decline because of the price and improved.

The heavy price of crude oil has also led to a sharp fall in the price of another major chemical product, plastic. Judging from the price of plastics monitored by the industry, the trend of polyolefin has been basically consistent since the three quarter of this year. Reporters noted that in July and August showed a downward trend of shock, and from September to November turned into a diving situation.

"The most impact is petrochemical PTA and plastic products. The impact of terminal demand is obvious. The decline in crude oil has shown a chain effect." Liu Xintian, director of China Commodity Research Center, said.

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　　 　 Shoes and clothing enterprises cost leader

"In the peak years of the past year, EVA is expected to cost more than 14000 yuan per ton, and it has fallen below 11000 yuan recently, and there is no rebound trend in the coming season." Reporters learned from the footwear industry that the price of EVA, the main raw material for sports shoes and slippers, has been weak recently due to the fall in prices of basic chemical raw materials.

"This wave of price reduction has relieved the cost pressure of enterprises to a certain extent." A person in charge of slippers manufacturing enterprises in Jinjiang, a foreign trade company, told reporters that the price of EVA raw materials dropped by 3000 yuan per ton compared with the peak years in previous years. The weight of a pair of slippers is usually between 200 grams and 300 grams, so the cost of each pair of slippers has been reduced by 0.6 yuan to 0.9 yuan.

As the main material for the sole and midsole of sports shoes, the price reduction of EVA also reduces the cost of each pair of men's code shoes by about 0.4 yuan. Industry insider Lin Huangcan told reporters that although the impact of EVA price reduction on finished shoes is very limited, it has released positive signals, including the prices of raw materials such as PVC, TPR and ABS, which are expected to come down. To a certain extent, it can offset the rise in average labor cost caused by inadequate start-up and the pressure of operating costs.

"Polyester staple yarn factory price fell 50 yuan / ton, the price center of gravity continued to move in the down channel, 1.4D direct spinning polyester short market mainstream reported 7900 - 7950 yuan / ton, the trading atmosphere is not ideal." As the textile raw material that the local textile and garment industry is paying close attention to, the recent polyester staple market quotation is still the following behavior, which has dropped more than 250 yuan / ton in the past week. Because the price of crude oil is declining, petrochemical products continue to bear down, the price of polyester market is dropping faster, and the price of polyester filament breaking has also been brushing new lows in the new year. The decline of polyester prices has also made room for the cost reduction for the textile and garment industry.