Polyester Production And Sales Reached 200%! Is It Hype? Or Recovery?

At the beginning of May, with the news of resumption of production in Europe and the United States, international oil prices began to soar. Driven by the rise of international oil prices, PX, PTA and ethylene glycol in polyester market are counted one by one, almost all of them are rising in price.

　　 Because of the rising price of polyester raw materials, some weaving enterprises have chosen to buy more raw materials than usual.

Shen Zong, the head of a large home textile and fabric enterprise, said that before the price rise of raw materials in the early May, they had stored up raw materials for nearly 1 months. The reason is also very simple. Anyway, it is necessary to maintain the normal production.

However, more weaving enterprises still choose the raw materials procurement strategy to buy and use.

Wang Wang, the chief of silk weaving weaving enterprise, said that before the order was really increased, it would not consider changing the strategy of buying and using.

The strategy of weaving enterprises is also well reflected in polyester production and sale of polyester factories. It can be seen that after entering the May, after the wave of production and marketing in early May, the sale of polyester filament went back to its original low point.

　　 With polyester production and marketing back to the plain, polyester prices again fell into a state of slow decline, almost fell back to the previous increase, seems to have formed a cycle.

　　 However, with the international oil price rising by 9% in May 14th, the market has undergone a new round of changes. The rise in oil prices has driven up the price of PTA glycol. At the end of 15, ethylene futures rose 2.92% to 3731 points, and PTA futures rose 3.23% to 3576 points.

In the case of polyester raw materials prices rose, polyester production and marketing reached nearly 200%, the new round of market prices have arrived, can this market continue? Have the weaving enterprises received orders during this period?

A long drought brings rain. The order is finally available.

Oil prices rose, polyester manufacturers released price rises, weaving enterprises took advantage of rising prices to buy raw materials, and traders saw the price of raw materials to increase orders, a wave of the market thus produced.

However, in face of the possible rise in prices, will weaving companies always buy it? Can weaving enterprises be able to buy? In the final analysis, we need to see the recovery of market demand.

In terms of starting rate, after May, the opening rate of water jet looms in Jiangsu and Zhejiang provinces has risen from 65% to 70%, and the rate of start-up has increased, and the demand for polyester raw materials will naturally increase.

　　 The number of fabric inventory in weaving enterprises has gradually decreased, which has dropped by 2 days compared with the highest point in the end of 4. Now there is about 40 days of billet storage.

　　 The manager of a Oxford production company, Shi Shi, said: "we planned to increase production intensity after the Labor Day holiday in May, but we did not expect the price of raw materials to rise in May, and received several new orders, so the original production plan ran aground."

The increase in the number of orders for weaving enterprises in May is not a case. Zhou manager, head of an air jet weaving factory, said: "recently, 100 thousand meters of Tencel and some cotton orders have been received. Although it is still much worse than the previous two years, compared with March and April, the situation in May has been much better. "

So to speak, After entering the May, the textile market finally had a bit of the traditional peak season, traders began to move, and weaving enterprises finally received a long lost order. Under such circumstances, in the face of rising prices of raw materials, cloth boss has the strength to buy it.

Europe and the United States began to unseal, recovery is indeed domestic demand.

As of May 15th, the number of confirmed cases of overseas new crowns has exceeded 4 million 430 thousand, but under such circumstances, European and American countries have begun to resume work. Is it the direct reason for the improvement of orders in the market that foreign countries begin to resume work on the epidemic? At the beginning, Xiaobian also thought so. But after some investigation, it is found that this is not the case.

Sun manager runs a textile trading company. His client structure has changed a lot since the beginning of this year. In previous years, the composition of the company's orders was 20% of domestic trade and 80% of foreign trade. However, since the outbreak of the epidemic this year, many foreign customers have cancelled orders directly. Some of the customers began to say that the order was postponed, but the list was postponed. Orders began to improve in May, but eventually they received orders for domestic trade.

Chen, who sells and sells top grade imitation silk fabrics such as acetate fabrics and modal fabrics, is also similar. He said recently he received many orders for SPH and broken card products, but almost all of them were mainly domestic sales, occupying more than 80% of total orders.

It can be seen that the resumption of production in Europe and the United States has not improved the foreign trade orders, but the domestic market has greatly recovered in the near future. The increase in domestic demand has supported the original textile industry with "flying in the air", but another leg, called "foreign trade", is hard to recover at a time.

What's wrong with foreign trade orders?

On the one hand, political reasons.

Since the outbreak of the outbreak, the US led western countries have frequently fired China, local time May 14th. Trump even said "such a complete break with China" in an interview with the media. And this attitude is also reflected in trade.

Last week, the BYD masks incident caused widespread concern on the Internet. Although BYD did not cause losses after the rumor, it is undeniable that the United States did set up corresponding standard barriers in the export of masks. In this regard, the Yiwu Commerce Bureau has also issued emergency measures to suspend the export of new coronavirus reagents, medical masks, medical protective clothing, respirators, infrared thermometers and other medical materials and non medical masks in the form of market purchase and trade.

It can be said that China has become a "child of others" because of effective epidemic prevention measures. The hostility of western countries to China has been unprecedentedly high. It is not surprising to make some small moves in the trade process, and the risk of foreign trade has dropped dramatically.

On the other hand, it is simply because demand is insufficient.

In the western countries, because of the habit of early consumption, savings in their hands are far behind the number of credit card bills, and even during the period when they lose their jobs, they even become normal.

Even after resumption of work, people earn their income again, and the first time they get their income is to return the credit card bills they bought before buying food products such as food and daily necessities rather than buying clothes.

Shen, manager of traders, predicted that even if European and American countries resumed their work at the top of the epidemic, the consumption of foreign trade clothing would have to recover at least two months later, which is still a more optimistic estimate.