"Kim Gu" Under The Polyester Chip, After The Market Can Be Further Further?

During the peak season of textile industry in 2019, the scene of "not prosperous" was everywhere. Today, the inventory of grey cloth is high; orders for textile mills and bomb factories have not reached the level of storehouse, the following order is not good, and the meager profit has been strong. The boss regrets that the double 11 of goods will be released early this year. Although the orders in the busy season have indeed appeared, orders have increased in number, but still less than the peak season in previous years, much less than last year.

2018-2019 years price chart of polyester chips in Jiangsu and Zhejiang

Although the market prices of PET chips rose this week, the increase was only 0.15%, and the market price of polyester chips is still at a relatively low level in the current year. Entering the September, the price of polyester chip market is far lower than that of the same period last year, and since the second half of the year, the price of polyester chip market has always shown a slight increase in the short term. The reason is mainly due to the continued weakening of downstream demand and the general cost push role of the upstream.

Supply pressure is not great, but terminal demand is weak.

Although polyester chip market supply pressure is not large, but terminal demand is weak, is still the key to curb polyester chip market price rise. Although the orders for spring factories and textile mills increased significantly in the short run, the peak season is not "prosperous" compared with the peak season in previous years. The industry is generally concerned about the poor continuity of orders and the high inventory of finished products. Many enterprises expect to put the Spring Festival ahead of schedule by the end of this year, thereby relieving the cost pressure.

The number of stocks is high and the enthusiasm for purchasing raw materials is not high.

The number of stocks is very high, which takes up a lot of money from terminal factories. Therefore, when the cash flow of terminal factories is not enough, the enthusiasm of purchasing raw materials is not high. The existence of inventory pressure also restricts the recovery rate of terminal weaving factories. According to statistics, at present, the comprehensive weaving rate of terminal weaving is only maintained at around 78%. Although it is close to the same level in previous years, the rate of increase in the recent operation rate is relatively slow, and the market outlook continues to rise in space or limited.

On the whole, the lack of "Kim Gu" has become a foregone conclusion. But polyester chip industry has excellent control ability, and in accordance with previous years Convention, before and after the Mid Autumn Festival, the domestic demand and external demand of the terminal market will continue to rise. At that time, the downstream market will still be stocked in stages, and the price of polyester chip market is expected to continue to rise slightly.

Source: long Zhong information and Business Association