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    Nylon Yarn Is Rising Rapidly, Looking Forward To Market Demand In The Second Half Of The Year.

    2020/4/27 11:07:00 2

    Nylon Yarn Quotation

    "This year is a year of witnessing history," more and more friends have put this phrase on the lips. 2020 is indeed an extraordinary year. We have witnessed too many possibilities. Can the nylon boat carry the market's worries?

    Demand determines market orientation

    The fermentation of public health incidents has brought unprecedented challenges to the entire textile industry. In March, when factories resumed work together, it was found that consumption demand at home and abroad was not expected to recover after the Spring Festival. Instead, the demand for orders was less than 50% in the same period last year, especially in the case of foreign epidemics. A large number of foreign trade to domestic demand, but we all understand that foreign trade and domestic demand is like a person's legs, now walking on one leg, how can we walk well.

    Fig. 1 weaving trend diagram


    Source: lung Chung

    According to the statistics of long Zhong information, as of April 23rd, the comprehensive starting rate of chemical fiber weaving in Jiangsu and Zhejiang provinces was 54.54%, a decrease of 1.22 percentage points. As can be seen from the above figure, 3 months later, the number of enterprises who failed to receive new orders had been increased. The so-called "gold, silver, silver and four red May" is especially small in this year's market.

    Foreign trade: the overall situation of foreign trade export is not clear yet, and the enterprises with high dependence on foreign exports are more obvious. With the implementation of measures to seal overseas cities, a large number of foreign trade customers withdraw their orders, which has cast a shadow over this year's foreign trade market. At present, the overseas epidemic situation has not been effectively controlled, and this year's production and marketing impact period has been prolonged. According to customs data, 1-3 months in 2020, China exported 45 billion 265 million US dollars of textile and clothing, up -17.70%.

    Domestic trade: most of the enterprises in China choose products that are related to medical protection products. This is the only straw that can be seen at present, which can help enterprises to "live". Since the resumption of the domestic market in February, the impact of the market in March has been greater. The orders for the terminal's spring clothes have shrunk seriously and the pressure on the warehouse is serious. There is no so-called "retaliatory consumption" in the textile industry.

    Fig. 2 price chart of nylon filament

    Source: lung Chung

    A picture shows that in 2019, from May, the United States announced the tariff increase of 200 billion US dollars to China's exports to the United States increased from 10% to 25%, thus opening up a negative impact on the textile industry. The overall trend of nylon yarn is going downwards, all the way down slightly, until the beginning of April this year reached the lowest point in history, the overall decline in the highest position in 19 years is about 35%.

    Demand support is insufficient, and market quotation is short-lived.

    The epidemic has been fermented to the world and the US stock market has experienced four fuses, crude oil price -37.63 US dollars / barrel for 10 days, and the industry market has fallen to the lowest level in history. Because of the mask industry in the past, 13 thousand yuan per ton of melt blown fabric in the past has been fried to about 500000 yuan per ton, and even the wind of the mask has blown to the nylon side. In the middle of April, the demand for masks and ear belts increased. The nylon DTY70D/24F yarn rose to 14500 yuan / ton from the beginning of the month to 20000-21000 yuan / ton, or 44%. It's fast and fast, and it's hard for small masks to pull the market. The market blowout is a flash in the pan, just 10 Yu Tian time, this hot wind has blown over. Today, the nylon yarn factory can only deliver the previous orders, and then it is hard to meet the "prosperity" of grabbing goods the other day.

    The ideal is very rich, the reality is very skinny.

    In 2020, over 1/3, many nylon companies have already given up in the first half of the year. Can the market of "Jin nine silver ten" in the three or four quarter be expected? At present, the nylon yarn market is in a dilemma, the cost support is insufficient, and the downstream demand is general. Then, in May, the field has indicated that it can recuperate. The impact of the cost side is not enough to stimulate the market, and the ups and downs of prices are not so important. In Europe and other countries, the epidemic trend is slowing down, and many countries are still cautious about the lifting of the ban. If the foreign trade has not been lifted, the domestic production and marketing will not be optimistic, and the order reduction will continue.

    Now the ideal is plump, and the reality must be steady and steady. Since everyone is bearing heavy loads, we can survive all this in the nylon boat, which is full of gratification and a bright future.
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