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    Polyester Factory Has Reduced Production By 300 Tons / Day! Or Support The Price Of Polyester.

    2020/4/3 13:01:00 47

    Polyester Price

    Under the impact of the epidemic, the entire industrial chain of the textile industry has been greatly affected. The rules and regulations of the industrial chain, which are all one's glory and honor, are all vividly displayed.

    The price of crude oil is dropping around 20 US dollars. It is difficult to form effective cost support for PTA, ethylene glycol and other futures markets. Upstream costs support collapse, and the most obvious injury is downstream polyester manufacturers.

    Polyester products, however, bear the brunt of polyester filament products. Especially in terms of profits, the price profits of polyester filament products have been on the decline in recent years. Among them, FDY products and POY products have fallen into a loss dilemma. By April 1st, the loss of FDY products was 94 yuan / ton, and the DTY product loss space was 144 yuan / ton.



    Finally, polyester manufacturers can not support it!

    In April 1st, it was reported that Shaoxing poly spinning filament factory began to reduce production by 300 tons / day, involving products of FDY.

    Polyester filament as the most direct raw material of gray cloth, can be said to be one of the important indicators of textile market trend. In this special period, every move has been concerned by downstream weaving and fabric market.

    Starting from the beginning of the year, the load of polyester factories has been increasing effectively. At the same time, new devices have been put into operation in the near future. As of March 27th, the polyester composite load was around 84%, of which the load of polyester filament remained at 74.7%, compared with the same period in the previous year, the load was only about 5% lower. But in the same period of last year, the opening rate of weaving market was much higher than that of now. It can be seen that the load of polyester is still in a higher position.




    Deep analysis, in fact, polyester manufacturers are now facing pressure is not small, but in all aspects of consideration, polyester manufacturers delay action. However, now some manufacturers are the first to issue a notice of reduction in production. Will it also lead other manufacturers to join the production reduction and reduction ranks?

    In terms of Xiaobian's personal view, the approximate probability will be!

    01

    Poor downstream demand, polyester production and marketing continued downturn


    In fact, after years of production and marketing of polyester has been poor, over 100 market only once, basically maintained at around 3-5.




    The most direct reason for the sluggish production and marketing is the shrinking demand for downstream.

    On these two days, the news of "holiday" and "reduction of production" is everywhere. As an important export area of textiles and clothing in Europe and the United States, the rapid spread of the epidemic has led to the shortage of overseas enterprises, the shortage of international transportation capacity, the great changes in supply chain timeliness and cost. Many foreign trade orders have been canceled and postponed. Foreign trade enterprises are facing enormous pressure, and even there is a risk of closing down and closing.

    In the last few years, the apparel industry has started to go downhill, and the inventory has been full, which has led to the "small batch and multiple batches". And this epidemic situation is a "lengthy winter" which directly extends the garment industry, which has a significant impact on weaving enterprises.

    The recession of clothing and weaving naturally reduced the heat of printing and dyeing and finishing industry. Based on the continuous increase of enterprise inventory and capital pressure, both the weaving enterprises, printing and dyeing enterprises and other enterprises have started the holiday reduction plan. The demand for raw materials is shrunk directly.




    02


    Polyester fundamentals are weak, and prices refer to "cabbage prices".


    The most direct impact brought by the weakening demand is the accumulation of polyester stocks. According to the statistics of China's silk net, the overall stock market of polyester market is concentrated in 34-45 days. In terms of specific products, POY stocks are stored for 28-35 days, FDY stocks are close to 29-36 days, while DTY stocks are about 34-45 days.

    After the Spring Festival, the phenomenon of polyester stocks is becoming more and more obvious. Especially now, it has reached a high level. Generally speaking, weaving factories have regular warehouse filling operations at the end of the month, but this year's market downturn, production and marketing is difficult to reach the same level in previous years, resulting in poor polyester factories going to the warehouse, and the probability of polyester in the next days will remain in a tired inventory cycle.




    At the same time, the price of polyester filament has fallen below the bottom price of polyester manufacturers in recent years, but it is difficult to support the price well. It can be said that the current price of polyester is about the same as that of Chinese cabbage. Specifically, the price of FDY 150D is concentrated at 5150 yuan / ton, and the price of POY 150D is about 4700 yuan / ton, while the price of DTY 150D is about 6900 yuan / ton.

    In fact, from last year, the price of polyester filament has been on a downward track. At the end of the year, to stabilize the price of polyester, several polyester manufacturers began to implement the "limited production and price protection" measures during the Spring Festival, making the price of polyester kept stable during the Spring Festival. And now the price of polyester is based on the low price in the early stage. It is also reasonable for the polyester manufacturers to use the production reduction measures to protect their prices.




    So what will be the impact of polyester production?

    1. go to the library

    After the production of polyester factories is reduced, the production capacity will be reduced. The most obvious effect is that the stock growth is slow. So, if the basic rigid demand in the downstream weaving Market is still in existence, the polyester manufacturers will achieve an obvious effect of removing stock. At present, the stock of polyester factories in polyester factories has broken through the regular stock level. After the manufacturers begin to go to the inventory process, they believe that the stock of polyester will return to normal level.

    2. price tag

    As we all know, weaving factories have the mentality of purchasing raw materials, but raw materials in the near future are decreasing continuously and constantly breaking the bottom price of the weaving factories. Therefore, most weaving factories basically adopt the attitude of buying and using and observing cautiously. Polyester has fallen into a vicious circle of "buying more and buying, and buying more." If the production of polyester begins to decrease, the stock will decline. At the same time, the basic needs of the weaving market will exist, which will surely form an effective support for the price of polyester.

    Not only is the pet market itself and the downstream weaving Market bad, but the upstream PTA, ethylene glycol and crude oil also do not form an effective cost support for it. Polyester prices continue to fall, making polyester and weaving all messed up. This time, there are manufacturers to cut production, whether it is to reduce the risk of their own enterprises or to throw bricks and jade, so that more polyester manufacturers to join the camp, for polyester price, perhaps to open a new situation for polyester filament.

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