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    Oil Prices Fall, Textile Chemical Fiber And Cotton Prices Are Implicated.

    2015/1/16 16:38:00 40

    Textile Chemical FiberCotton PriceRaw Material

    With the continuous decline of raw material cost and price, the market price of downstream products will be lower. The expected price of downstream enterprises will be reduced to the market, and trade sales will be limited by the upstream market, which will eventually increase the pressure on enterprises.

    Crude oil slump continued turbulence, the textile industry is facing a downturn in the market situation, silk weaving industry export prices, business volume and sales profits are affected.

    At present, many small and medium-sized enterprises even begin to slow down the pace of development, hoping to reduce the production volume and continue to develop their lives. High inventory is a common phenomenon in today's industry. The market is very urgent in adjusting the industrial structure, optimizing and improving the added value of products and improving equipment technology.

    And chemical fiber products are

    Cotton fiber

    The main substitutes are subject to

    Price advantage

    Its impact on the cotton market will increase, which will affect the downstream consumption demand of cotton and will adversely affect cotton prices.

    Oil prices fell.

    Chemical fiber industry

    The regenerated polyester industry has the most significant impact.

    The origin of the recycling industry itself is to cope with the high price of energy industry. The collapse of oil prices makes the industry's position embarrassed, and the other industry - coal glycol is also facing the same situation.

    When the original is cheaper than substitution, is there still an alternative product?

    In the long run, the fall in oil prices should be favorable for the development of chemical fiber industry.

    The downstream of chemical fibre is textile, which is close to terminal consumption. Prices are relatively less volatile by raw materials, and benefit from falling costs when crude oil prices fall.

    The drop in oil prices will significantly reduce the cost of the chemical fiber industry.

    Compared with the chemical fiber industry, such as polyamide and polyester, which has a large production capacity, the sub industries that need stable spandex and polyester industrial yarn will benefit more obviously.

    However, the lack of demand is still the biggest problem. Due to the adverse impact of the continuous decline of the crude oil level, the polyester staple products are hard to change. In the absence of raw material prices, there is no positive information in the downstream. It is expected that there will be a possibility of short cut in the short term.


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