The Demand For Yarn Slowly Increased During The Off-Season.

1. Price trend

According to the price monitoring of the business community, the spot price of 1.4D polyester staple fiber and Shandong polyester yarn in June 18th was running smoothly compared with that of yesterday. The national average market price of the 1.4D polyester staple fiber is about 6670 yuan / ton, up 40 yuan / ton compared with the beginning of June, or about 0.6%; the average price of Shandong polyester yarn in Shandong market is about 13260 yuan / ton, up 200 yuan / ton compared with June, or about 1.53%.

Two, factors affecting prices

From the upstream fundamentals, as of June 15th, the domestic PTA social inventory reached 3 million 550 thousand tons, and the stock volume decreased by nearly 90 thousand tons compared with the end of May. Ethylene glycol social inventory was around 1 million 334 thousand tons, and the new stock in the new year was renewed. Due to the serious storage in the early stage, the trend of high inventory in the short term will continue, and PTA and ethylene glycol are expected to remain weak in a short time. In addition, some of the polyester plants were put into operation in June, with a total capacity of about 1 million 550 thousand tons. Sheng Hong and Hengli Heng were expected to put into operation in June, and the situation of short-term PTA and glycol storage was difficult to change.

According to customs data, 1-5 months in 2020, China's textile and apparel exports totaled 96 billion 160 million US dollars, down 1.17% compared to the same period last year. Since mid May, overseas orders have gradually resumed. According to the downstream enterprises, although the export orders have improved, the prospects are not clear. Due to the demand for offshore orders, the demand for domestic products has slowed down, and domestic demand has been slow to digest. The price is only supported by the cost side. There is no other positive action. The business is expected to be generally depressed.

The summer is coming, facing the textile traditional off-season. According to some downstream businessmen, the 1.4D polyester staple fiber has dropped this week. The spot price has slipped 30 yuan / ton compared with the beginning of the week, and the spot price of 32S polyester yarn is mixed. Due to the support of raw materials, some businesses still choose to export goods at a stable price. At present, the amount of enterprises receiving orders is seriously insufficient, and overseas orders are difficult to join. In order to avoid the pressure of storehouse, some textile enterprises in Zhejiang have issued a notice of suspension of production and delivery. Due to the imbalance between supply and demand, shipments downstream are difficult, market panic spreads, and the trading atmosphere is seriously insufficient.

In terms of futures, the main contract of Zheng cotton rose and rebounded following the rise of US stocks and US oil, and finally closed at 19280 yuan / ton, up 90 yuan, or 0.47%, compared with the previous trading day.

Three, the forecast for the future market

At present, the overseas situation is not clear, foreign trade orders are difficult to sustain, facing the summer off-season, the domestic demand is not enough. In the face of the storages of raw materials such as upstream PTA and ethylene glycol, polyester and short yarn prices are going to rise in the short term.