The Department Of Raw Materials Fell Heavily Under Pressure.

Last week, international crude oil prices plummeted. On the 20 day, WTI prices in May not only reached a record low, but also dropped to a negative value, and finally closed down more than 300% at the closing price of -37.63 dollars per barrel.
This led to a series of strong reactions in the market. The most injured is the domestic chemical fiber market. According to the feedback from Jiangsu, Zhejiang and Shanghai, the polyester staple fiber has slumped by 600-700 yuan / ton in recent years. On the 27 day, the price of 1.4D*38mm direct spun polyester staple fiber was only 5500 yuan / ton, compared with the price of 6200 yuan / ton on 20 days, the price dropped 700 yuan / ton. Upstream and downstream enterprises call "unbearable".
Affected by raw materials, the recent price of pure polyester yarn fell 400-500 yuan / ton. As of April 27th, the price of pure polyester yarn 32S from a factory in Shandong was 9700 yuan / ton, down 400 yuan / ton compared with the previous week. Many cotton mill owners said that the recent decline in orders for pure polyester yarn was particularly serious. In addition to the reduction in consumption caused by the epidemic, a large reason was the sharp rise and fall of the upstream.
However, pure cotton yarn remained relatively stable. As of 27 days, the price of air spinning OE12S in a factory in Hebei was 12100 yuan / ton, and the price of combed yarn 21S and 32S was 18300 yuan / ton and 19200 yuan / ton respectively, compared with the previous week. According to the cotton mill, there are three main pressures in the near future: first, the orders are few, and the individual manufacturers have not received the new ones for nearly 30 days; two, the fluctuation of raw materials is large and the losses of the enterprises are serious; three, the capital chain is tight, and many enterprises have been unable to pay the wages of the workers.
With the May Day approaching, some textile factories have already enlarged their fake plans for workers. Domestic spinning capacity is expected to drop by about 20% in May. A big shuffle in the industry has really come.