Crude oil plummeted, driving the entire petrochemical industry all the way to a “miserable green”! Polyester raw materials may plummet again! Downstream has no choice but to take a holiday: the company has 0 orders, so find a new way out in advance!
Crude oil plunges 13%
Thermal coal drops to the limit! Polyester raw materials follow the decline!
Not long ago, the United States joined forces with many countries to release more than 60 million barrels of crude oil reserves, and crude oil rose instead of falling. However, just last Friday, crude oil staged a night of shock! International oil prices plummeted by more than 10%!
New York crude oil fell below US$70/barrel for the first time since the end of September, a drop of 13.04%, returning to 3 months ago overnight; Brent crude oil approached 70 yuan/barrel, a drop of 11.27%; the main Shanghai crude oil futures contract fell by the limit yesterday night. It fell 8.01% to 464.1 yuan/barrel. It was the largest closing decline since April 21, 2020, and both US and US oil hit new closing lows since September 9 this year.
Even the three coal brothers, another bulk upstream, did not escape. After the Price Department of the National Development and Reform Commission conducted a special survey on improving the coal market price formation mechanism, the sentiment in the coal futures market weakened, and thermal coal fell directly to the limit!
The sharp decline in crude oil and thermal coal has directly driven the entire industry chain to “green”! Naturally, the polyester market cannot escape. Among them, as of November 30, PTA futures fell by more than 8% on the 3rd, and ethylene glycol fell by 7%.
Polyester filament heavily pressed “miserable green”
Downstream: It’s useless if it falls, there are no orders at all
With raw material futures falling so miserably, the downstream market will certainly not be able to escape the disaster! The polyester filament market has also been dragged down again. Prices have recovered due to the industry’s joint production reduction measures, but it is difficult to resist the sharp drop in raw materials. Some polyester factories once again launched a large price reduction of 100-300 yuan/ton on the 29th!
The “roller coaster” market situation caught textile people off guard and made them unbearable. But the price drop is not the worst thing. The worst thing is that the prices of polyester filament and gray fabric have dropped, but the production and sales are still light, with no one buying it!
However, the market is crazy with bad news. The power restriction policy has been relaxed, raw material prices have been adjusted back, and downstream operating rates have been relaxed… But downstream bosses are also having a hard time because orders have also decreased.
“I didn’t know until I went to work that the holiday will be on November 25th…” A piece of notice, how many bitter tears! A clothing manufacturer in Guangdong recently issued a notice: holiday!
In addition, recently, a manufacturing company issued a notice saying that due to a serious lack of orders, the company will take annual holidays in advance starting from December 1, and the start time is to be determined!
I have to lament that the sharp rise and fall in the market has completely driven downstream manufacturers crazy! Affected by the sharp drop in market demand, many bosses even said that they did not dare to stock up on goods and would produce as many materials as there were orders!
Although the textile industry has entered “winter”, domestic demand is not strong and downstream price transmission is not smooth. The price increase of raw materials in the early stage is significantly greater than that of the gray cloth link, resulting in the compression of profits of textile companies. Currently, traders are facing a sharp increase in financial pressure at the end of the year, and they need to be wary of the “trampled risk” caused by inventory selling on the trade side. This series of external factors have brought some unknown risks to the operation of textile enterprises.
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