The crude oil market has suffered a "bloody storm" recently! The price of crude oil has continued to fall for many days since the plunge last Tuesday. The plunge in crude oil is also a "thunderbolt from the blue" for the bulk of textile raw materials that have just boarded the "price increase train" and are preparing to start! The domestic PTA main force 2101 contract continued its downward trend. The futures price of the night trading stage on the 10th once hit a new low of this round of decline, and the overall weakness remained weak. The MEG main force 2101 contract also fluctuated downward.
After experiencing some warm ups in the early period, polyester filament yarn has recently begun to enter a price reduction mode. The decline in crude oil and polyester raw materials this time has helped the polyester yarn, which has been declining in recent days, continue to fall.
"Love and hate" the raw materials, the owner of the weaving factory panicked!
Having been "ruined" by the market in the past two years, textile bosses can be said to "love and hate" the prices of raw materials: what they love is that the current prices are indeed cheap enough, and what they hate is that the price of raw materials has risen and fallen sharply. It’s more stimulating than buying stocks. I learned that some large weaving companies eventually lost millions of dollars by hoarding raw materials based on their experience in previous years.
In the recent period, the production and sales of polyester yarns have been difficult to achieve. Occasionally, polyester manufacturers’ discounts and promotions can stimulate a wave of purchase enthusiasm for weaving manufacturers, but the continuity is not long. After all, for this year’s market, weaving manufacturers are under great financial pressure. Buying appears more cautious. Therefore, nowadays, buy and use has become the choice of most textile people. Even if the polyester factory has a discount and promotion, everyone dare not buy more for fear that the price will be greatly reduced. And this time the impact of the raw material end on the market price is even more panic for the weaver owner!
It is understood that the current raw material inventory of most weaving factories is mostly around 15-20 days, which is almost the price in late August, which is higher than the current raw material price. That is to say, if the price of polyester filament falls again as the price of crude oil falls, weaving The current raw material inventory of the factory will undoubtedly be devalued.
For the weaving factory that has been producing with minimal profit, this is undoubtedly "to make things worse."
has been depreciated before the cloth is off the machine! Grey cloth high inventory limits profitability
Nowadays, the raw material market is also experiencing drastic fluctuations. It is difficult for weaving mills to grasp the right time to avoid the dilution of profits caused by raw materials. At the same time, the market itself is still deteriorating in the later period.
Since the beginning of this year, the regular chemical fiber fabrics have not been better. Take polyester taffeta and pongee as an example, except in May due to the anti-epidemic clothing fabrics that drove certain varieties of polyester taffeta and pongee to go well in the market, the market has been in a stalemate.
Entering mid-August, seeing the market for imitation memory, four-way stretch, T400, T800 and other seasonal autumn and winter fabrics gradually improved, the market went smoothly. As the three Musketeers of winter clothing fabrics in the past, "polyester taffeta, pongee, and nylon" The sales volume of "silk spinning" has been mediocre. Most manufacturers said that production and sales could not be flat, and inventories were still rising.
It is reported that the current stocks of the grey fabrics of Bailaitai loom manufacturers are 2 months or more, which means that their products have no pricing power in the market. It can be seen that the "low price" situation was very high in September. Difficult to improve.
“Recently, we received orders for pongee at a low price, and now the profit is very low.” A manufacturer specializing in polyester taffeta and pongee said, “The raw materials we bought before are more than the current raw materials. The price is high, there is no profit originally, and the customer is still holding down the price, and there is no way."
It can be seen that although the lower raw material prices can ease the current raw material costs of downstream manufacturers to a certain extent, for the grey fabrics that are already in production, they are undoubtedly depreciated before they are off the machine. The boss even complained that it is quite satisfactory to earn a few cents per meter of cloth, and most of them will lose money.
For the current textile market, as polyester, weaving, and clothing are all in their own "high inventory" state, the promotion of upstream raw materials is even more important. But now the bottom of crude oil is unclear, the turning point of the de-stocking is difficult to find, and the negative factors are superimposed, and signs of improvement in the market need to be further observed.
