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    International Oil Prices Fall, Shoes And Clothing Enterprises Release Part Of Cost Pressure

    2015/1/4 20:53:00 28

    International Oil PriceShoes And Clothing EnterprisesCost Pressure

    "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 related investors, leading to chain reaction, which will eventually lead to the end of the industry.

    Shoes and clothing

    Manufacturing and other industries benefit. "

    Affected by the sharp drop in international crude oil futures prices, ethylene, rubber, methanol and other basic

    Chemical varieties

    All of them show a downward trend, and the pmission through price also brings space for cost reduction in the local shoe and clothing industry.

      

    Basic chemical industry

    raw material

    Cost plummeting

    The drop in crude oil has lowered the price of naphtha and PX, resulting in a collapse in the cost of PTA as the main raw material for textile and clothing polyester fibers.

    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, and international crude oil prices usually lag behind the price of domestic plastics, rubber, polyester fiber and other related products.

    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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