Good News: Many Countries Begin To Vaccinate; Good Omen: Polyester Production And Marketing Outbreak! Bad News: Foreign Trade Companies Need To Be Extra Vigilant!

In the morning, the focus of PTA spot negotiation shifted upward. In the morning, Meg's internal price fluctuated and sorted out. The negotiation was stalemate. Today's price was stable and small.

After the polyester filament production and sales volume increased significantly on Friday, the factory raised the quotation more at the weekend, but downstream and terminal factories had a certain amount of raw material inventory after moderate replenishment, so the willingness to continue replenishment was not strong, and the overall production and sales data fell back at the weekend. It is expected that today's polyester filament will show a narrow range of shocks, focusing on the trend of crude oil and polyester raw materials and downstream demand changes.

For most textile workers, 2020 is definitely a tough year! From the beginning of the year when the domestic city was closed and the construction was delayed, and then the epidemic situation was rampant around the world, which caused huge losses to the global economy.

When the epidemic has just spread around the world, textile workers still hope that foreign countries can control the epidemic situation through their own efforts like China. However, it was not until November when Europe began to close its cities for the second time. When foreign trade orders were cancelled and fabrics became the stock in the warehouse, we really realized that only vaccine was the only way to control the epidemic globally.

The good news is that the vaccine is finally coming!

As the world's largest consumer market, although China's textile exports to Europe and the United States began to be gradually overtaken by emerging markets such as Southeast Asia, on the other hand, Southeast Asian countries to a large extent also import China's yarn and fabric for reprocessing, and their final export destination is still European and American countries.

Therefore, in the vaccine news large-scale fermentation at the same time, the polyester filament market ushered in a long-term boom, weaving enterprises have begun to hoard raw materials.

On December 4, according to the data monitoring of China silk capital network, the polyester filament Market in Jiangsu and Zhejiang is booming, with the average production and sales of mainstream large factories ranging from 200% to 300%, and the production and sales of some factories can reach 500%.

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After the outbreak of polyester production and sales on December 4, some polyester factories began to raise prices, with an increase of 50-100 yuan / ton. It is not ruled out that polyester prices will continue to rise in the future.

The outbreak of polyester market is just a microcosm. As the new crown vaccine begins to be widely promoted in European and American countries in the next few weeks, there may be a new turning point in the textile market at the end of the year.

Recently, during the transition of power of the president of the United States, there are still many actions against China. Whether it is "cotton in Xinjiang" or "restrictions on the travel of the Communist Party of China and its relatives to the United States" These two cases undoubtedly further exacerbated the friction between the two countries. Since the Sino US trade war started, the repetition of Sino US relations has always been a big stone in the minds of textile owners. Especially this year, affected by the epidemic situation, the textile industry has been hit hard. Although the rapid progress of vaccines has greatly increased the trust of foreign trade businessmen, the continuous development of vaccines between China and the United States has always been a deep obstacle to the recovery of foreign trade exports.

From January to July 2020, the United States imported 46.785 billion US dollars of textiles and clothing, a year-on-year decrease of 27.85%. Among them, imports from China totaled 12.133 billion US dollars, a year-on-year decrease of 42.8%, Vietnam's imports of 7.408 billion US dollars, a year-on-year decrease of 11.13%, and India's imports of 3.56 billion US dollars, a year-on-year decrease of 27.7%. It can be seen that the United States imports the largest proportion of textiles and clothing from China.

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A textile trader in the U.S. market disclosed: "in the past two years, the U.S. market has become more and more difficult, and the list has become less and less. Among them, Sino US friction has a great impact on this aspect. Biden will take office next year. I wonder if his China policy will be improved." Many domestic traders who export through foreign trade companies are also worried because their end customers are actually European and American countries. The uncertainty of the relationship between China and the United States has caused many American buyers to transfer their orders to Vietnam, India and other countries.

At present, it is not clear whether Biden will try to reverse Trump's China policy, but judging from the current situation, the possibility of a complete truce between the two countries in the short term is unlikely, which has brought great uncertainty to textile exports. Therefore, many traders have switched their business from export to domestic sales. It can be predicted that the domestic textile export will still face great pressure in the future, but the textile boss needs to be vigilant when the order comes. Try to list the possible risks in advance in the contract and try to avoid them.