Industry Chain Continues Downward Trend In The Yarn Industry Or "Great Challenges"

Last week, the pressing situation of overseas public health incidents has not been alleviated, but the market hopes for OPEC to cut production and crude oil ended 6 consecutive falls. I thought I was going to die, but I didn't want to go back to life. Further, with Russia's failure to cut production negotiations, Russia refused to jointly reduce production, while Saudi Arabia planned to substantially increase production while sharply reducing its selling price, and the market price war opened up. OPEC+ Brent crude oil opened 30% down, early PTA, MEG opened limit, and the spot supply of partial charging problem will continue to enlarge.

Polyester short: the collapse of polyester raw material is bound to downstream.

In the form of visual tightening, polyester refining costs will go down all the way. The rash momentum will make the polyester staple fiber cost down synchronously, and will give the polyester and short enterprises an ideal cash flow. In addition, under the previous promotion policy, the social stock is digested below the pressure point, and the market price is relatively lower. From this perspective, the enterprises in various countries have temporarily offered quotations in a rational and observing situation. But with the spread of negative emotions in the polyester cost market, the real downward expectations still exist. 1.4D *38mm turnover or trend of 6100, or even less than 6000, fell below the lowest point in 2016 has been expected. (unit: yuan / ton)

Yarns: high priced raw materials, not yet digested, the yarn market is squeezed.

The yarn enterprises that should have resumed work at the end of January and early February were forced to postpone their work until February 10th after being restricted by public health events. However, in the initial stage, only the leading enterprises in various regions were resumed, but the areas resumed in the middle and small coastal areas and the Southeast coastal areas were relatively slow to recover after resuming production. By the end of February, the yarn industry started to increase to 52%, and the construction started to rise to 62%, and the growth rate has gradually slowed down.

According to market research, yarn enterprises reserve staple fibers for 10-15 days before the festival, and the unit price is 6900-7200. The new batch of raw material storage nodes is mostly in the middle of 2 months after the end of the month, the transaction price is more than 6600-6650, and the big end is 6300-6400. The deep fall of crude oil caused the polyester industry to have a higher probability of falling down under the action of resonance, and the yarn enterprises had to fall once or twice every time, and always hold high priced raw materials. (unit: yuan / ton)

Weaving: demand has returned to temperature, and construction has increased by 16 percentage points.

Weaving factories in all parts of the country have started construction, and the main domestic weaving production base has increased to 55%, with a 19 percentage point increase. From the specific point of view, cotton textile comprehensive boot rate is 48%, chemical fiber textile comprehensive boot rate is 60%. At present, as the market returns to temperature, the order before the festival is still on the order, but the logistics and dyeing mill's ability to receive orders is not enough, and the conventional grey cloth digestion is still slow. It is difficult for local enterprises to increase their load in the early stage of reemployment. It is expected that with the isolation of workers, the industry will continue to rise.

On the whole, many malpractices in the industrial chain have gradually emerged, and the market has been expected to continue downward and continue to deteriorate. With the bad digestion, the demand for the back market has gradually resumed. The yarn Market from the upper and lower reaches will be eased. On the thorny road, the eastern sun rises and the West rains, and the risks and opportunities go together. True vision.