US Stocks Plummeted, Oil Prices Widened And Polyester Products Prices Continued To Fall.

US stocks have always been a weathervane of the global economy. In the wake of the global epidemic, the Dow Jones Industrial Average plummeted another 1464.94 points last night, following a strong rebound of more than 1100 on the 10 day, which has dropped 20% from last month's high level.

The international crude oil market is even more "bloodshed". Russia rejected the proposal of the OPEC to further reduce production. Saudi Arabia promptly cut prices and increased production, causing global oil prices to fall to its lowest level in 20 years.

After Trump announced the ban on Tourism in Europe, the decline in international crude oil futures prices once again expanded, and WTI and Brent oil prices fell more than 6% during the day, and now they are reported at 30.79 US dollars / barrel and 33.56 US dollars / barrel respectively.

On the basis of the sharp decline in crude oil prices, the original price of the crumbling polyester products once again plummeted.

On the PTA side, as at 15 hours on March 12th, the 2005 main contract of PTA futures ended up at 3858 points, down 96 points from the previous trading day, or 2.43%.

In terms of ethylene glycol, as at 15 hours on March 12th, the 2005 futures contract of MEG futures closed at 4000 points, down 86 points from the previous trading day, or 2.1%.

With the price of polyester raw materials falling so much, the price of polyester filament is basically stable, and some factories have fallen by 100-200 yuan / ton, not the lowest, but only lower.

The price of polyester filament keeps falling, which is not a good news for today's cloth owners.

Looms start to pick up and inventory problems remain.

With the accumulation of orders during the Spring Festival holiday, one or two weeks after the opening of the market was quickly digested, and the market returned to a state of calm.

According to the data monitoring of China's silk net, as of March 11th, the loom start rate of Shengze area has risen to more than 7, while the average inventory of weaving enterprises has been dropping slowly, and it still maintains near 38 days.

Although the market was not good enough last year, weaving enterprises were generally cautious about buying raw materials. But as the loom operating rate continued to pick up, the rigid demand for raw materials still existed.

Global outbreak, future orders worrying

With the outbreak of the new crown pneumonia outbreak in the world, with the number of people diagnosed, the health care system in Iran and Italy has been disrupted. More and more countries and regions have issued the order of "sealing the city".

Judging from the quantity of textile consumption in China in 1 and February, with the continuous spread of the epidemic, people's willingness to go is significantly reduced. At this time, the consumption of clothing will be greatly compressed.

Academician Zhong Nanshan has said that foreign epidemic will last until at least June this year. It can be said that when the whole epidemic situation is not obviously improved, textile foreign trade orders on the market will be hard to improve.

During the visit, Xiaobian also learned that because of the serious epidemic situation in Korea, a 300 thousand metre order fabric exported to the local area was cancelled because of force majeure, and this is not just a case.

In the case of foreign trade orders are worrying, polyester filament prices continue to decline, gray cloth began to store again, the boss's mentality has not changed.

raw material

The more you buy, the more you lose.

After the start of the year, raw materials kept falling, making cloth owners recalling the fear of being dominated by polyester prices last year. The decline of polyester after the start of last year made the boss of the fabric hoarding lose heart for months.

After the beginning of this year, the black swans flew out one by one (is this the Swan Lake?) The price of polyester filament has plummeted.

The good news is that most of the weaving bosses have been "cutting the cake and growing wiser" and have only prepared raw materials for 15-30 days. But the bad news is that the polyester filament has fallen off the price one day at a time, bought today, and it will reduce the price tomorrow. There is no difference between profit and loss, only the difference between the less and the less.

Cloth price

Falling down can't rise.

Compared to the change of mentality of buying raw materials, cloth bosses are much more worried about the price of cloth now.

When prices are insipid, the price of grey cloth tends to move with the price of polyester, and polyester rises and it falls. But now that the polyester filament has fallen sharply at a price per day, cloth owners will suffer huge losses if they really make such a price.

On the one hand, a substantial reduction in cloth prices will cause a large depreciation of the stock fabric, but there will be a slow-moving situation without price reduction; on the other hand, because of the large number of producers of conventional products and fierce competition, the price of cloth tends to fall and rise easily.

In such a case, it is necessary to take the courage to break the wrist.

afterword

The new crown epidemic has now swept the world, and polyester raw material prices have plummeted. Such "Black Swans" have been difficult for decades. For textile people, in the face of such quotations, they need to understand the information in time, change their thinking, adopt different strategies at different times, and strive to keep the company alive.

History has proved that when a storm is swept away, it is not only ruins but also endless opportunities.