Industrial Chain Impeded Polyester Trend Facing Downside Risks

Source: lung Chung

And overlay domestic public health events, polyester and related industries to slow down, and further increase the pressure on social inventory. At the end of 2, the domestic market gradually improved, and the resumption of production and production was improved. However, domestic worries remained unresolved, foreign aggression gradually emerged, public health events broke out in the world, and the situation in Europe and the United States was not optimistic. Domestic polyester industry was lack of domestic demand, export restrictions were limited, and all sectors of the industrial chain were backlog. According to long Zhong's understanding, PTA and glycol inventories have been rising year after year. Up to now, the port of MEG in East China's main port area is 1 million 54 thousand and 500 tons, an increase of 67 thousand and 100 tons compared with last Thursday, and PTA social inventory of more than 300 tons. Under heavy pressure, the market of PTA and glycol started to start maintenance plan. According to long Zhong, the two quarter of Zhongtai, Jiaxing petrochemical, Yisheng Ningbo and Yisheng PTA plant in Hainan had overhaul plans. The ethylene glycol plant of Sanjiang chemical industry plans to have a short stop inspection at the end of March, and the Yangba plan will stop the inspection in April. Besides, the current cash flow of coal glycol is at a loss. The expectation of repairing and lowering is bigger.

Terminal orders are broken, reduced and postponed. Demand is stagnant.

After the outbreak of global public health events, the terminal textile industry has been constantly exploding. Foreign famous brands have repeatedly announced the closure of store sales to online marketing. Some brands have announced a moratorium on production, and the demand for clothing and textile industry has been greatly reduced. Some media reported that the overseas public health incident caused a loss of over $1 billion 500 million to the garment industry.

International clothing orders have shrunk, such as Hermes, Gucci, Chanel and other world-famous brands have been announced to stop production; Primark, the largest fashion retailer in the UK, cancelled all orders; Top Shop parent Arcadia Group froze suppliers payment; Peacocks cancelled all orders before June 20th; New Look halted all production; Debenhams deferred payment for one month; Fossil cancelled orders to attack Dongguan enterprises. Domestic export orders for textile enterprises are also blocked. It is reported that a baby garment manufacturer in Zibo has developed rapidly in recent years, and its main products are exported to high-end markets such as Europe and the United States. However, affected by public health events, enterprises have received a lot of withdrawal notice from Europe and America.

At the beginning of the year, the domestic polyester industry is facing the problem of slow recovery and difficult recruitment. However, the current demand is shrinking. The demand for the peak season before the Qingming Festival is now quiet. It is accompanied by the plan for the holiday sweeping of the Qingming Festival. The downstream demand is further shrinking, and the pressure of polyester supply is aggravating. If the market supply and demand contradiction is not improved in April, the market will end. End demand will shrink polyester enterprises to reduce risks and avoid risks.

According to market research, at the end of February, with the field workers coming to work, weaving and printing and dyeing enterprises started to start gradually. Orders before the Spring Festival and early after the festival were basically completed at the end of March and early April, and the new orders were greatly reduced, cancelled and delayed. The market anxiety increased. Most dyeing mills and weaving enterprises expressed doubts about whether the two quarter orders could maintain the normal operation of the enterprises.

Assuming that global public health events can be effectively controlled by the end of April and early May, the market is expected to improve slightly in the two quarter, and the rate of reduction in weaving and printing and dyeing industries is limited. Some enterprises in the polyester industry maintain the maintenance plan, and the overall operating rate is controlled at around 3%. The industry is in a difficult period. If public health incidents are difficult to change in the short term, the duration will last more than a month, or even more. For a long time, the panic in the upstream and downstream industries of polyester is expected to intensify. Small and medium sized dyed plants or early high temperature holidays, large enterprises bearing capacity is slightly stronger, facing the high pressure of inventory and falling down is also a choice at the same time, at the same time, weaving and purchase orders are reduced, enterprises can not open, will also reduce the negative hedge. Polyester industry is currently at a high level of inventory, if the inventory is difficult to consume, the rate of operation is also expected to decline. Under the nests, the eggs were laid down, the load of polyester started to decline, the PTA and ethylene glycol storages increased, and the peers faced the risk of reducing production.

According to official sources, the G20 summit will be held tonight. At present, global public health events are spreading more and more, endangering the safety and health of people and seriously affecting the world economy. The summit will be held in a video format, which aims to discuss strategies and stabilize global economic development. It is very important for textile and garment industries.