Polyester Filament Market Failed, Raw Materials, Weaving Inventory Is Now Double Litre.

In the past years, the upstream cost of polyester market has increased, and there are many phenomena in promoting polyester sales, but this year, there are many differences compared with previous years.

What makes the polyester Market stagnant? The answer lies not only in the general downturn of downstream products, but also in the low cost of raw materials.

This year, due to the influence of the macro side, weaving terminal products are running poorly, and to some extent, they are dragging on the raw materials.

Recently, the polyester market is facing a drop in production and sales. The enthusiasm of downstream manufacturers is gradually fading away. The cost level of upstream raw materials of polyester will also weaken the sale effect of polyester filament gradually.

How long will the decline of polyester market continue in the face of falling costs and demand?

Raw materials and weaving stocks are double litre, and the situation of fabric orders continues to deteriorate.

Review of the domestic filament weaving Market in China since the last month, the general situation is gradually deteriorating.

We pass two data charts from China's silk net and first look at the performance of the whole market.

We can see from the chart of raw materials inventory of polyester factories in Jiangsu and Zhejiang provinces that China's silk net has monitored the stock market. Due to the recent poor performance of the polyester market as a whole, the inventory of mainstream manufacturers has increased significantly.

According to the statistics of China silk net, the overall stock of polyester market is concentrated for 16-24 days, basically returning to the high level of storage in March. In terms of specific products, POY stocks are concentrated in 8-13 days, FDY stocks are close to 14-19 days, while DTY stocks are about 24-30 days.

In addition, we can see from the monitoring charts of the inventory of weaving enterprises in the Shengze market. There is a noticeable rise in the weaving enterprises' Library recently, from the original month to the current level of about 39 days, and the stock level is at present a warning level.

Recently, from the feedback of the fabric delivery date, the market situation continued to decline compared with last week, and the delivery date is about 7 days low.

Overall, orders for fabrics and printing and dyeing market have been presented as "small batch and multiple batches", and market confidence is obviously insufficient.

From the above situation, we can see that the stock of raw materials and stock in the gray fabric market have been rising. The raw material inventory can be pferred to weaving in April, but in May raw materials and weaving stocks are double litre. What will happen next when raw materials can no longer be pferred to weaving?

Polyester industry chain "eat enough" status is increasingly prominent.

With the deepening of the off-season market, both fabrics and printing and dyeing market will meet the pressure of rising cost and shrinking demand. The polyester industry chain "insufficient to eat" is becoming increasingly prominent.

At present, it is understood that in recent years, with the side effects of soaring raw materials and slump prices in recent years, the purchasing heat of weaving is rather cold.

The enterprises that make polyester raw materials have a strong desire to reduce the price of products to pfer inventory, and bear the greater pressure of inventory rise. However, the effect of recent sales promotion is not obvious.

Because there is a gap between the price of each upstream and downstream, and can not effectively link up, so I believe that due to the decline in polyester raw material production costs, there is still room for the decline of polyester in the short term.

While the expected price of raw materials in the upstream is falling, the demand for "bruising" makes it difficult to balance the production and marketing of polyester products, and the price will continue to the terminal weaving Market. At present, the sales situation is still hard to open, and the sales of mobile products are few. Especially, conventional fabrics such as polyester and Taffa and spring Asian spinning occupy a large market share. The sales of products are more difficult, resulting in the continuous increase of weaving enterprises' inventory. In fact, in April, raw material inventory has been pferred to the weaving enterprises.

At present, the inventory of raw materials and weaving is double litre in May, and the desire for raw materials for the downstream is rather weak. Raw material inventory can no longer be pferred to weaving.

The author predicts that the situation of stock rise will increase day by day.

Polyester factories and weaving enterprises will catch up with the phenomenon of high frequency in the near future.

In the case of increasing inventory, no sales promotion and lack of orders, polyester factories and weaving enterprises are bound to double the operating rate.

From the cost point of view, the recent decline in polyester raw material market has slightly eased the profit of polyester products, but we can also see that even in accordance with the current polyester raw material price calculation, the production of polyester products is also difficult to maintain good cash flow.

It can be seen that polyester factories will still wander between profits and production and marketing in the short term.

At present polyester plant has opened the device repair operation in the near future, but according to statistics, most of them belong to the polyester plant with little capacity in production plan, and polyester leading enterprises have not yet cut down production operations. If the late factory stock rises to a high level, it is bound to usher in a larger area of polyester reduction.

In addition, since May, the weaving section has been bleak. Manufacturers generally say that business has been going downhill.

It is reported that loom operation load in Shengze has been decreasing.

In fact, on the one hand, the market will soon usher in the mid year off-season, and the downstream demand itself is not strong; on the other hand, the international situation is fierce, and the internal and external sales are not smooth, and other factors also restrict the textile market.

Under such circumstances, the prosperity of downstream weaving industry is naturally not as good as before. At present, the overall start-up rate of the market is weak, and the starting rate of looms everywhere is decreasing. Now, the opening rate of water jet and air-jet looms in Shengze is maintained at about 8, and the trend is also declining.

The rate of decline in weaving enterprises has greatly reduced the demand for raw materials, and fundamentally depressed the playing space of rising market prices.

To sum up, the continuous bad profits of polyester raw materials have made the polyester products with sluggish demand weary. In the face of soaring inventories, the filament weaving factory has been in a dilemma.

But to add insult to injury, the market "black swan" frequent flying: the United States imposed tariffs, depreciation of the renminbi and overcapacity of the market.

The bad factors in the textile environment are also increasing.

In the market demand is not enough to support the market situation, how to resolve the pressure from inventory and profits, to the silk weaving factory a big problem!