The long-awaited big promotion has arrived as scheduled, and polyester filament manufacturers have once again concentrated on profit-sharing and shipments!
Since August, promotions by polyester filament manufacturers have become the norm. The effect is acceptable but the sustainability is not as good as expected. After the previous few concentrated promotions, the polyester filament market is currently at a stable level. Prices are in a state of no market, sporadic low-priced goods have good transactions, and most companies’ inventories continue to increase. Overall, polyester filament yarns have been promoted frequently in the third quarter. Although it has entered the traditional peak demand season of “September”, the market demand for polyester filament yarns has not been seen. Significant improvement.
Polyester faucets organize group promotions and shout out:
Production and marketing have become “monkeys flying in the sky”!
Under this situation, polyester factory group promotions have come as scheduled in the near future. Yesterday morning, mainstream manufacturers’ polyester filament discounts were 150-450 yuan/ton, and downstream users met Buy low, some production and sales continue to increase, and companies once again achieve the effect of destocking.
However, judging from the sustainability after this promotion, the editor believes that the market impact on the industry chain is still weak. Compared with the world, the epidemic situation in China has basically been effectively controlled. However, residents’ consumer confidence is still insufficient. In the past January to July, the national consumer price index showed a downward trend in four months. Since last year, e-commerce platforms have developed rapidly. During the Mid-Autumn Festival and National Day, it is expected that textile and clothing e-commerce consumption will still have large sales. However, other than this, it is difficult for the market to have other demand growth points, and some overdrafts have been advanced in the second quarter. demand, so the advancement of e-commerce platforms is difficult to change the reality of sluggish domestic demand.
Therefore, for downstream users, they have not yet reached the stage of concentrated bargain hunting, and are still focusing on phased replenishment. In this round of promotions, the purchasing volume of some downstream users has once again reached about a week. After the centralized replenishment, there is no willingness to purchase in the short term. Therefore, the polyester filament market will enter a state of price and no market in the near future. With the next wave of purchasing cycle Due, the market still has expectations for promotions. On the premise that there is no major change in terminal demand, it is difficult for polyester filament to reverse the mode of promotional shipments. Most autumn and winter fabrics have been stocked in advance in the second quarter, and the demand for polyester filament has been overdrawn in advance. The demand for the “Golden Nine and Silver Ten” peak seasons is also difficult to reflect, and the market still needs to be treated with caution.
Foreign trade encounters “intestinal obstruction”:
The freight cost of a polyester container is more than five times that of previous years
With insufficient domestic demand, the export of polyester filament itself is also facing greater difficulties. In the past five years, polyester filament yarn has experienced a period of rapid expansion, and there is an urgent need to build a dual-cycle development model to alleviate the supply pressure caused by excessive growth in production capacity. However, currently affected by the epidemic, both domestic and international demand are in a shrinking trend, and the development of polyester filament dual cycle is facing great resistance.
Polyester filament is an important raw material for textiles and clothing. At the beginning of the epidemic last year, China’s textile and clothing exports dropped sharply. As the domestic epidemic gradually came under control, textiles, including masks, Clothing export volume has increased steadily, with textile exports growing at a significant rate, far exceeding the total clothing export volume.
Figure 1 Picture of month-on-month changes in China’s textile and apparel exports from January to July 2021
According to statistics from the General Administration of Customs, my country’s textile and clothing exports totaled US$168.651 billion from January to July 2021, a year-on-year increase of 11.85%. Among them, clothing exports have always maintained a positive growth trend, but the export growth rate has shown a sharp downward trend, and textile exports have experienced negative growth in the past two months. Currently, the General Administration of Customs has announced that China’s total textile exports, including exported masks, from January to August were 600.83 billion yuan, a decrease of 18.4%. Since the second quarter, domestic textile companies have started purchasing orders for autumn and winter in advance. As the order purchasing is coming to an end, the market demand for polyester filament has dropped significantly, and the start of texturing and weaving has continued to decline recently.
It is understood that 40.4% of the world’s population has received at least one dose of vaccine, while only 1.8% of people in low-income countries have received at least one dose of vaccine. At present, more than 60% of the people in China are fully vaccinated, 13% have received one dose of vaccine, and the total vaccination rate is more than 70%. The current epidemic situation in China’s major textile and clothing exporting countries and regions is still severe, which has led to a decline in terminal demand and a sharp reduction in orders year-on-year. Shipping costs have remained high since last year. According to industry insiders, the current freight cost of a polyester filament container is more than five times that of previous years. The high transportation costs make foreign trade manufacturers hesitate to place orders, and the export situation of polyester filament is not good.
Figure 2 Comparison of price trends of mainstream domestic polyester filament models in 2020-2021
Taken together, the current domestic demand for polyester filament is sluggish, foreign trade has great resistance, and the dual-cycle model is difficult to promote. In the short term, the market will continue to use price to promote volume. </p
