POY Capacity Rises, Prices Drop, Small And Small Bomb Companies Stop Working Seriously

Last year, the textile market was hot, but at the recent stage, the textile market was not prosperous. The high inventory and high inventory made the textile boss headache. Some textile enterprises have started a small price reduction to inventory. Generally speaking, price promotions are still attractive to fabric merchants, but the effect of inventory is not as good as expected, and fabric buyers are not enthusiastic.

For example, spring Asian spinning is widely used for the down jacket, suit and children's lining accessories. It is basically used for sales volume in the market. However, judging from the market spanactions in the first half of May, the spring Asian textile business performed fairly well, not as hot as last year.

Factory inventory is difficult to go, raw material demand is naturally not to be strengthened, can only be purchased on demand. At present, the inventory of DTY manufacturers is about 22 days, DTY manufacturers have high inventory, and the demand for POY is even more difficult.

According to statistics, the weaving warehouse in Shengze has been around for 39-40 days, and has reached the highest level in the past six months. Inventory is increasing and profits are further reduced, but manufacturers are still afraid to stop. At present, the loom operating rate in Shengze is still around 90%. It seems that the weaving inventory will continue to increase in the near future.

The weakness of the downstream demand seriously affects the stock of the fabric of the weaving enterprise and indirectly affects the stock of polyester, and the day is really sad as the "intermediate" between the upstream and downstream. In addition, from the second half of 2017, a large number of projectiles were put into operation on the market, and the situation of over supply of DTY was aggravated. The competition between the bomb companies was fierce and the product structure was single. If there were manufacturers to reduce prices and clear inventories, the funds of the Mini bomb companies could not be recovered, and the ability to resist risks was even worse.

POY factory capacity rises and prices drop, downstream demand is still the main force.

At present, domestic POY manufacturers are mainly based on new Feng Ming and Tong Kun. According to the performance report of the first quarter of 2019, the POY/FDY/DTY output in the first quarter was 838 thousand, 278 thousand and 181 thousand tons respectively, up 15.3%, 85.2% and 20.1% respectively, mainly in the first half of 2018. In the first quarter, the average sales price of the main products POY/FDY/DTY excluding tax was 7365 yuan, 8107 yuan and 9114 yuan / ton respectively, representing a decrease of 4.93%, 3.65% and 3.05% respectively.

In addition to the impact of international oil prices, upstream PX and PTA and MEG, the main reason is the impact of downstream market demand. The market demand is weak, and sales and prices are hard to rise. The psychology of buying or selling will affect the purchasing power of POY demand manufacturers, and the POY demand manufacturers directly affect the rise and fall of the bomb companies, coupled with the lack of market demand for DTY, which makes the bomb companies uneasy.

It's too difficult to sell cloth. The bomb companies can't afford to stop.

According to the survey of industry media in recent days, 60% of the enterprises in the market are below 5 units, and the risk resistance ability of the small and micro bomb companies is poor, and the high inventory of grey cloth leads to the poor sales of polyester. Upstream raw material prices fell, businesses are buying on demand, stockpiling awareness is weak, affecting the rate of start-up. It is understood that nearly 6 of the Canadian companies have increased the start-up rate of less than 80%, and the closure of Jiangsu Taicang's bomb companies is relatively serious. Some small and micro bomb factories (3 units and below) have suspended production.

Editor's note: along with the recent economic depression and the market becoming saturated and the competition becoming more and more intense, the textile industry has arrived at a crossroads at a loss and anxiety. But the plight and opportunity coexist. The textile industry needs a qualitative breakthrough and a fast comprehensive spanformation to adapt to the market rule of "survival of the fittest".