Polyester Factories And Weaving Enterprises Expect Good Market In July, Sino US Trade And High Inventory Or Restricted Trend.

Recently, Sino US trade has eased, geopolitical tensions have been stirring up market nerves, and the polyester industry chain has ushered in a strong wave.

For polyester filament, long drought meets manna!

After this month, several rounds of high production and sales of good stimulation, polyester factories in the early stage of high storage pressure has been greatly alleviated, now the stock market level is almost the lowest stock level since the Spring Festival. Recently, polyester stocks have returned to a low level, coupled with consideration of their own profitability factors, polyester manufacturers will enhance their short-term prices.

And after the upstream raw materials of polyester raw materials are unblocked, the trend of downstream chemical fiber weaving Market is becoming more and more important.

The textile industry terminal in the two quarter of the long sluggish, the entire textile industry chain is dragged down by the terminal weakness, the overall market is relatively light. Especially after the warming of Sino US trade war in May, the market was more worried about the demand side, the market confidence was seriously frustrated, the reduction of orders and the high inventory of weaving end became the most popular topic of textile concern.

Now, is there any obvious change in the filament weaving Market after the catalytic upgrading of raw materials?

Xiaoshao polyester, weaving Market: polyester factory profit no pressure to restore inventory, weaving raw materials remain cautious!

A number of weaving enterprises have said that the profit of weaving Market is very low. If it is a single processing enterprise, it will test the buying time and buying price of raw materials. When the terminal performance is weak and there is no sign of warming in the short term, most weaving factories are extremely cautious in preparing raw materials.

During the visit, the head of many weaving enterprises said: "raw materials are prepared at a low level and are almost ready for the end of June to the beginning of July. Now it is necessary to start the 7-8 months in the past year, considering whether we should increase the stock of raw materials, but the market is relatively poor, so we are also very hesitant."

In terms of product inventory, weaving manufacturers have feedback on the overall market inventory of grey fabric, which is still in a higher position, and the inventory is slow. During the visit, many textile enterprises in charge said: this year's big road products are hard to sell or sell, and the competition is extremely fierce. The differentiation of non conventional products is much better, at least there is a sale.

The owner of a textile enterprise with forty or fifty circular machines said: "now there are fierce competition in conventional commodities, such as fleece and imitation, and the prices and profits of related products are very strong. Now we should try to reduce the proportion of such businesses and basically not dare to do inventory."

Another chief executive of a large local warp knitting enterprise in Haining said, "this year's regular road goods are hard to do. Because of their previous expectations, the company has adjusted its business line and differentiated more. This year, it said that many new partners have been opened up this year, and the business is relatively good.

In polyester enterprises, after a period of time after inventory, product inventory is relatively low, visit a filament production capacity in Shaoxing nearly 1 million 200 thousand tons, mainly FDY large polyester manufacturers. It is understood that so far this year, the overall profit of the company is not bad, the filament and slice profit is relatively weak in May, but it has been improved in June, and the profit in the first half of the year is not bad.

The overall market inventory of enterprises feedback is relatively low in the previous period, and there are less than a week in Tongxiang's large factory stock. Ningbo polyester enterprises have been sold to mid July. In addition, the stock price of the polyester enterprises has gradually increased after the stock dropped to a low level.

Shengze weaving Market: low price dumping convergence, July is expected to be good.

1, low price selling convergence, grey cloth price declines slowed down

This year, in addition to the impact of poor demand, the production capacity of conventional products has surged, resulting in imbalance between supply and demand in the market. Many textile bosses have built factories over the past two years, and the market homogenization competition is fierce. It is reported that in Northern Jiangsu, there are many manufacturers who have not received orders after the Qingming Festival, and there have been stocks for about 2 months. The market began to have a low price dumping phenomenon in late May, though it did not develop in large areas, but to a certain extent, it depressed the price of gray cloth in the local market, and also made it harder for manufacturers to operate.

Tian Zong of Wujiang Yonghua Textile Co., Ltd., said: "most of the grey cloth in Northern Jiangsu is shipped to Shengze and Keqiao, and then sold to the local market.

Driven by the rising atmosphere of raw materials, manufacturers of low price shipments also began to close their hands, ready to wait for action. It is reported that there is also a phenomenon of price increase in inventory purchase.

2, confidence gradually recaptured, facilitate the order to speed up the pace.

For market participants, there has always been a saying that confidence is more important than gold. This year's market is actually not as pessimistic as we might imagine, but many industry chain members have lost confidence in the market and are afraid to start off easily, resulting in the purchase from terminal clothing to finished products to grey cloth to raw materials. Bottom-up procurement is prudent. Generally, there will not be a lot of hoarding to gamble on the market. However, at present, this phenomenon has improved. The owners of sample enterprises generally say that the trade market in July will be better.

Chen, general manager of Hui Ye Textile Co., Ltd., said: "in previous years, it was the worst in June and improved in July, and this year should be the same." Wu Jun of Nantong Jie Chuang Textile Co., Ltd. said that in the near future, the market will be better in July than in June, but the possibility of large orders will suddenly be lower.

Yonghua textile Tian also thinks that the demand of terminal clothing market will directly affect the next order, but the market can not be bad. The market in July will be better than now.

Textile bosses' confidence restored, to a certain extent, will boost the atmosphere of the market. Although the effect is not yet obvious, traders are beginning to purchase orders for conventional chemical fiber fabrics based on expectations for the July market.

Two key points in the late stage of restricting market: Sino US trade and high inventory

For the textile industry in the United States, which is concerned about the United States levy tariffs, the downstream enterprises visited basically did not panic or excessive anxiety, most of the recent United States that the tariff is uncertain, the impact is more obvious. Once it is clear, regardless of whether or not, it basically tends to think that the order of the United States will continue to come down.

The total demand for the US side may shrink, and some low-end orders exported to the United States will be replaced by the Southeast Asian region. But Southeast Asian countries do not have so many corresponding capacity to undertake at the same time. At present, the scale of the external substitution is still limited, and the transfer order is only a small part. Most of the order will still go to China. Once the tariff is clear, the two sides expect to discuss the tax sharing.

At the same time, the market is also worried about the current high inventory situation in the weaving Market. Some people believe that "stock" has become the sword of Damour, which restricts the trend of the market.

"The main thing is to look at stocks. Only when stocks are reduced to a certain extent, will the market begin to really warm up." In the course of the investigation, Chen Dun, a textile owner who produces polyester and taffy, said, "at present, the stock in the factory is relatively high. It has been in storage for 1 months. This is the number that has never been reached in the past two years. So, while ensuring normal operation, we will first consider going to stock instead of protecting profits. Now the profit margins are very low, and some 190 polyester taffes have already lost money."

Since this year, "high inventory and high start-up" has become a new feature of the industry, especially in June, weaving inventory has been up to 42 days, the highest value in recent years, which led to the resistance of the market. "

At present, the hot market of raw materials does not mean that the whole industry chain is better. The key is whether the demand can really get up, so many stocks in the market can not be consumed. " Shen Zong, who has been struggling for more than 10 years in Wujiang textile industry, said.

On the one hand, many textile bosses have better expectations for July. On the other hand, they are also worried about how their inventories are getting higher and higher. "This year, we will not easily start work, because as long as the market starts, inventory is still relatively easy." Chen Zong said in Shengze area.

There is a common saying in the textile market, that is, five poor, six, and seven turning over. At present, the textile market has entered a more delicate interval. The short turn of market does not indicate the change of general direction. At the moment, the establishment of the bottom of the stage or the beginning of the abyss still needs substantial promotion. Therefore, textile people need to treat the heat of the market calmly, and do not blindly and optimistically operate. (source: China silk net, Huatai futures)