Textile Market Quotation Crisis Encountered Crisis

The textile market continued to "bottom" in January this year.

Reporters from the business sector to monitor the January commodity price volatility list of textile sector saw that the month of the month rose 5 kinds of goods, the top three of the goods were polyester POY (2.51%), polyester FDY (2.29%), dry cocoon (3A above) (2.26%).

There were 16 kinds of commodities with a decrease of -8.79%, and the top three were acrylonitrile (-8.79%), lint (grade 3 inland) (-4.51%) and viscose staple fiber (-3.61%).

At the same time, the export data of textile industry is still not ideal.

According to the data released by the General Administration of customs, in December 2015, China's textile and clothing exports amounted to US $26 billion 950 million, an increase of 22.60%, an increase of 4.97% over the same period last year.

Among them, textiles (including textile yarns,

Exports amounted to US $9 billion 810 million, an increase of 0.58% over the same period last year. Exports of clothing (including clothing and accessories) were US $17 billion 139 million, up 7.65% over the same period last year.

In addition, from the BCI index of the business community, as of January 29th, the BCI index of the business community in January was -0.24, which rose by -1.10%, reflecting the contraction of the manufacturing economy in the month and the downside risks of the economy.

The main reasons leading to the fall in prices in January are manifold: first, the textile enterprises have stopped work before the Spring Festival, the demand has been reduced, and the sale of cotton yarn has gradually been scarce.

The scale of production and parking continues to expand, and the operating rate has dropped from 73.32% at the beginning of the month to 62.43% at the end of the month, which has led to a rapid fall in the demand for PTA spot, and the demand for PTA has lost support.

In February, we entered the Spring Festival holiday.

The supply and demand pattern continued to be weak, and Xia Ting predicted that the textile market would be weaker overall.

First, the demand recovery is slow. In the past few years, after the Spring Festival holiday, the pick-up process is relatively slow. In particular, many small textile enterprises have a phenomenon of "early closure and late start up". It is expected that the demand will pick up in March.

Two, product inventory cumulative pressurization, like the PTA industry chain, entered in February, if the early polyester repair plan can be fulfilled, then the comprehensive start up is expected to be reduced to 60%, but PTA device has no maintenance plan during this period, and continues to accumulate inventory.

Three, the uncertain factors of the rise and fall of crude oil prices, the anticipation of the policy of cotton rotation, and the effect of balancing the production pressure of local reeling enterprises.

To sum up, the textile index is expected to fluctuate in the 717~710 range in February.