This week! Several large sets of PTA equipment are waiting for maintenance, the electricity bills of textile enterprises are rising again, and the cloth boss is selling gray cloth at a loss…
Let’s take a look at what’s new this week!
There are still several large PTA devices waiting for maintenance
Judging from recent weeks, the 2.2 million-ton unit of Yisheng Petrochemical was shut down for maintenance on June 11 and is scheduled to last for 15 days; the 2-million-ton unit of Yisheng Hainan was shut down for maintenance on May 27 and restarted on June 12; The 6 million ton chemical plant was operating at 70%; the load of Yisheng New Materials’ 6.6 million ton plant was reduced to 80% on May 23; the load of Fuhai Chuang Petrochemical’s 4.5 million ton plant was reduced to 70% on May 26 and on May 30 The operation has dropped to 50%, and the load has been increased to around 80%. The 750,000-ton unit of Yadong Petrochemical will be shut down for maintenance on June 18 and is tentatively scheduled to last for 7-10 days.
However, there are still several large equipment waiting for maintenance. The production capacity base of the planned maintenance equipment is large, and the market supply is expected to continue to decrease.
Hengli Petrochemical’s 2.5 million tons of PTA5# plans to shut down for technical transformation and maintenance from July 2, which is expected to take 20 days;
Hengli Petrochemical’s 2.2 million tons of PTA3# annual maintenance is scheduled to start on July 23, and the estimated time is 14 days;
Fuhai Chuang’s 4.5 million ton unit plans to shut down for maintenance in mid-July, which is expected to last for one month.
The editor has something to say: In terms of fundamentals, the supply and demand of PTA itself has not been the dominant factor in price operation. However, under the planned maintenance of PTA equipment, the supply is expected to decrease, which still supports the market. However, the current operating rate of downstream polyester remains high, and the immediate demand for replenishment is still stable. Therefore, the PTA market supply may maintain a destocking pattern in the short term.
Electricity bills for textile companies rise again
In the hot summer, when electricity consumption is at its peak, the textile and chemical fiber industry has received a “blow in the face”!
Being in a high-energy-consuming industry, textile and chemical fiber companies will face “increased electricity charges”, which is undoubtedly “making matters worse” for the companies. In the past month, raw materials have fallen. If the cost of electricity increases and faced with weak demand, textile raw materials will not be able to increase their prices even if they want to, and the losses will further expand.
Recently, following the lead of Zhejiang Province, the Hunan Provincial Development and Reform Commission issued the “Hunan Provincial High Energy-Consumption Enterprises’ Market Transaction Plan for the Summer Peak”. The plan is clear. The range of market transaction price difference declarations for high energy-consuming enterprises is: the base load transaction before the month is -90 yuan /MWh to 90 yuan/MWh, and the minimum bidding transaction within the month is 90 yuan/MWh, with no upper limit. For power consumption that exceeds the contract, the power dispatching agency predicts that there will be no power supply gap, and the settlement price difference will comply with the relevant provisions of the medium and long-term trading rules; during the period that there will be a power supply gap, a punitive electricity price will be implemented, and the settlement price difference will be based on the monthly transaction price difference + agency service price + 10 yuan /kWh execution.
The editor has something to say: The increase in electricity prices will undoubtedly hurt the most energy-consuming enterprises such as textile and chemical fiber enterprises.
Cloth boss sells gray cloth at a loss
There have been frequent sales of polyester yarn recently, with prices falling by nearly 600 yuan/ton in half a month. What does this mean? This means that cloth buyers can negotiate prices with cloth sellers again!
When the price increases, they pretend not to understand the raw material market, and when the price decreases, they lower the price faster than anyone else. Anyway, it is impossible for fabric prices to increase. Buyers who are accustomed to low prices asked the textile bosses to say bluntly: How about I give it to you?
The market is currently in the off-season, and the sharp drop in order volume has forced textile bosses to accept orders at low prices. What? Isn’t it obvious that he is taking advantage of someone’s misfortune?
The price of peacock bias gray fabric could be sold for about 7 yuan the year before last. The cost price at that time was definitely not as high as it is now, but the gap was not very big. It is understood that the price including the weaving cost the year before last was about 6 yuan/meter, and the raw material cost was 4 yuan. At the previous price, each loom could make a profit of 200-300 yuan per day. But now the price of gray cloth alone is only 5.5 yuan/meter. The price of finished products is only the price of gray cloth the year before. This is no longer on the verge of losing money. Crazy temptation, but really both feet have entered a loss-making situation.
The editor has something to say: In order to have more funds to prepare for the peak season in the future, it is not impossible for textile bosses to sell some inventory at a loss.
Market review
In terms of polyester: PTA prices fluctuated this week and fell overall. The current mainstream quotation of PTA is around 6700-6800 yuan/ton. International oil prices have fallen after a surge, and there is a certain inventory pressure on downstream polyester factories. PTA has fallen significantly this week. It is expected that the PTA market may continue to fluctuate and weaken.
In terms of polyester filament, the price of polyester filament fluctuated weakly this week, and the main reason was that��This is due to the rebound in upstream crude oil prices, and polyester filament follows the fluctuations in costs. Downstream users mainly need to replenish goods, and promotions have increased. The overall production and sales of polyester filament are still not high.
In terms of profit, PX’s profit margin dropped slightly this week compared with last week, and its current profit has dropped to US$203/ton. In terms of PTA, its losses expanded this week, and its losses are currently around 351 yuan/ton. In terms of ethylene glycol, the loss expanded this week, and the current loss is US$251/ton. In terms of polyester filament, the polyester price rebounded this week due to the cost side. The price of polyester products is relatively strong, and the profits of some products have increased; FDY150D has turned a profit, and the current profit is 46 yuan/ton; the loss of POY 150D has dropped slightly, and the current loss is 17 yuan. / ton; DTY 150D due to strong POY price, the loss expanded, the current loss is 87 yuan / ton.
In terms of operating rate, the average operating rate of PTA was 71.4%, an increase of 1.2% from last week; the real-time operating rate was 70.9%, and the real-time effective operating rate was 79.4%. In terms of polyester, the average polyester load was 83.9%, a decrease of 0.9% from last week. At present, the market has entered the off-season, orders are being placed slowly, and the start-up of weaving enterprises has declined. The recent weaving operation rate is around 66%.
In terms of production and sales, crude oil prices have rebounded this week, polyester manufacturers have increased openly and covertly, and polyester production and sales have partially recovered. The average production and sales volume is around 70-80%.
In terms of inventory, according to the statistics of Silkdu.com, the overall inventory of the polyester market is now concentrated at 28-29 days; in terms of specific products, POY inventory is around 27-32 days, FDY inventory is around 22-28 days, and DTY The inventory lasts for about 26-28 days.
In terms of weaving, the operating rate of downstream weaving enterprises is not high, and there is still a slight downward trend. At present, the off-season atmosphere is strong, orders are mostly small orders, and manufacturers’ enthusiasm for production is weak. Therefore, the startup rate is low, at 66%. Market orders are scarce this week and the circulation speed of gray cloth has slowed down, so the inventory of gray cloth has risen to about 36 days.
In terms of printing and dyeing, this week, the number of gray fabrics entering the warehouse decreased slightly compared with last week. Printing and dyeing enterprises reported that the overall number of orders received was average. As the off-season approaches, domestic sales orders are placed sporadically, and orders from traders are relatively lacking. There are often empty vats in downstream dyeing factories. Orders in both the domestic and foreign trade markets are showing a downward trend, with only a few scattered small orders for rigid needs being placed, and new orders received by dyeing factories are limited. This week, most printing and dyeing factories have a sluggish order-taking atmosphere, and the operating rate of printing and dyeing factories has dropped slightly to 55%. In terms of delivery time, the quantity of gray fabric entering the warehouse is small, and the general delivery time is about 4-5 days, while some busy manufacturers require more than 7 days.
Outlook
At this stage, the downstream has entered the off-season, so there is still no significant improvement in downstream demand. Now that crude oil has rebounded, polyester prices have fluctuated, and downstream is still mainly in need of replenishing positions. It is expected that prices will continue to fluctuate in July if there are no emergencies.
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