This week, Russia mobilized for the first time after World War II, the Federal Reserve raised interest rates, PTA processing fees exceeded 1,000, and many giants suddenly announced the suspension of production…
Let’s take a look at what’s new this week!
Russia mobilizes for the first time after World War II!
According to the Russian TASS news agency, on the morning of September 21, local time, Russian President Vladimir Putin delivered a public televised speech to the whole country, announcing that partial mobilization would be carried out in the Russian Federation from now on. Reuters stated that this was Russia’s first mobilization after World War II. After the mobilization order was issued, crude oil, PTA, and ethylene glycol futures indexes began to rise.
The editor has something to say: Some polyester factories are expected to increase polyester prices.
Fed raises interest rates
On September 22, the U.S. Federal Reserve announced a 75 basis point interest rate hike, raising the federal funds rate target range to between 3.00% and 3.25%, in line with market expectations. This is the fifth time the Federal Reserve has raised interest rates this year and the third consecutive 75 basis point hike, marking the largest rate hike since 1981.
Since March this year, in response to the overall surge in oil prices, food prices and other living costs, the Federal Reserve has raised interest rates five times, with a cumulative increase of 300 basis points. However, U.S. inflation has still not dropped significantly.
The editor has something to say: The Federal Reserve’s interest rate hikes and the impact of the Russia-Ukraine war have pushed back and forth, affecting the fluctuations of commodities. Textile people have seen the prices of raw materials rise and fall as a result.
PTA processing fee exceeds 1,000
After experiencing a sharp price drop in August, some Asian petrochemical product prices took the lead in rebounding in early September. Among the 31 products covered by the ICIS Asia Price Forecast Team, 35% of the products increased in price in September, and the average price will exceed the average price in August. Starting from the end of August, the temperature dropped in most areas of the country, which alleviated the power shortage. The operating rate of the polyester and downstream weaving industries increased, resulting in an improvement in the demand for polyester raw materials.
Entering September, the operating rate of PTA enterprises remained at a low level, the operating rate of downstream polyester and weaving rebounded, the marginal supply and demand of PTA improved, and the market destocking was obvious. Due to this, PTA processing fees exceeded the level of 1,000 yuan.
The editor has something to say: The profits of textile people are getting less and less.
Many giants suddenly announced the suspension of production
The recent textile market is not peaceful, the Jinjiu market is not doing well, an old factory over 20 years old has gone bankrupt and liquidated, and industry giants have suddenly stopped production… How can one do business with peace of mind these days?
The debt exceeds 35 million! Bankruptcy and liquidation of a well-known textile company
Recently, on the Alibaba Assets Judicial Auction Platform, the equity investment of a company held by Zhejiang Diershen Clothing Co., Ltd. will be put up for public auction, with the starting price being 1,293,476 yuan.
I can’t bear it anymore! Chemical A-share companies call for a halt to “production”! European nylon manufacturer announces suspension of production!
Sold at a loss! Shengjitang (600227) had to “stop” methanol production. On the evening of September 13, the company announced that its chemical production base, Guizhou Chitianhua Tongzi Chemical Co., Ltd., had suspended methanol production.
The editor has something to say: This year has been difficult for everyone to see.
Market review
In terms of polyester: In terms of PTA, the price of PTA has basically stabilized this week. The current mainstream quotation of PTA is around 6500-6600 yuan/ton. The supply of PX continues to be tight this week, and the operating rate of PTA has declined despite high profits. PTA prices have been supported, and the PTA market is expected to be slightly stronger in the future.
In terms of ethylene glycol, the price of ethylene glycol fell slightly this week, and the current mainstream quotation is between 4300-4400. The operating rate of ethylene glycol has stabilized, downstream demand has increased, and the overall trend will be stable in the future.
The profit margin of PX this week dropped slightly compared with last week, and its current profit has dropped to US$155/ton. As for PTA, its profit decreased this week, and its current profit is around 251 yuan/ton. In terms of ethylene glycol, losses increased this week, and the current loss is US$177/ton. In terms of polyester filament, the price of polyester yarn has changed greatly this week due to the large change in cost, and the price of polyester yarn products has also changed. Therefore, the profit has changed greatly, and the loss has slightly decreased; the loss of FDY150D has increased slightly, and the current loss is 75 yuan/ton; POY 150D The loss decreased slightly, and the current loss is 135 yuan/ton; the profit of DTY 150D increased slightly, and the current profit is 310 yuan/ton.
In terms of operating rate, the average operating rate of PTA was 63.2%, an increase of 3% from last week; in terms of polyester, the average polyester load was 83.1%, consistent with last week. This week, due to the increase in orders for autumn and winter fabrics, the overall enthusiasm for starting work has rebounded. The recent weaving operation rate is around 69.3%.
In terms of production and sales, polyester filament sales were weak this week, and many weaving manufacturers just needed to restock. Although the market atmosphere improved partially during the week, the duration was short, production and sales were low, and the overall production and sales dropped slightly from last week.
In terms of inventory, according to statistics from Silkdu.com, the overall inventory in the polyester market is now concentrated at 22-26 days; in terms of specific products, POY inventory is around 22-26 days, FDY inventory is around 16-25 days, and DTY Inventory lasts about 20-25 days.
In terms of weaving: It can be seen from the Shengze Index of the Ministry of Commerce that the operating rate of downstream weaving enterprises has remained stable. The “Golden Nine” has stalled, new orders have once again been slow to be placed, and companies are generally less enthusiastic about starting operations. The operating rate this week has stabilized at 69.3%. The weaving market has seen a trend of discontinuation of new orders. Many downstream users have reported that subsequent new orders are not smoothly connected, and the market transaction volume has declined. Therefore, gray fabric inventory has rebounded slightly to about 35.3 days.
In terms of printing and dyeing: this week, the number of gray fabrics entering the warehouse was the same as last week. The overall market orders this week are average, so the number of printing and dyeing factories entering warehouses this week has not changed much compared with last week, and the operating rate is stable at 59.7%.
In terms of delivery time, the current quantity of gray fabrics entering the warehouse is average, so the general delivery time is still around 4-5 days, and some busy manufacturers require more than 7 days.
Outlook
This week has entered the second half of the Golden Week, and the market sentiment is average. Textile bosses are polarizing in taking orders. Affected by various factors, the market is expected to continue as it is next week.
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