Polyester raw material prices have been strong recently, especially PTA, which has rebounded strongly.
At the end of the month, two major polyester leaders, Yisheng and Hengli, both announced reductions in long-term contract supply of TA in July. Yisheng plans to reduce long-term contract supply by 30%-70%, and Hengli plans to reduce TA supply. 50%. The supply reduction plan has a significant boosting effect on the market, and the price of the main PTA contract reached a new high after the year.
The spandex market, another chemical fiber raw material, has risen rapidly in June, as of June 29 The price is 75,000 yuan/ton, up 8.07% from the beginning of the month and 138.10% year-on-year, climbing to a 10-year high.
Since this year, the domestic spandex market has been rising rapidly. As of March 7, 40D spandex has It increased by nearly 70% from the beginning of the year, then fell back slightly and started to rise again in mid-May, climbing to a 10-year high. As of June 28, the price was 75,000 yuan/ton, an increase of 9.65%, and a year-on-year increase of 138.10%. The dual benefits of domestic demand and export sales have promoted the development of the spandex industry. The tight supply of spandex itself is difficult to improve in the short term, and some factories still have intentions to explore increases. On June 30, a spandex factory issued another notice that all specifications would increase by another 2,000-3,000 yuan/ton, which would be implemented from July 1.
Spandex fabrics are bargain-hunting, PTA surges to help
Polyester filament is going to counterattack?
Recently, cloth merchants have stocked up on spandex-related fabrics, which has affected the rapid transfer of gray fabric inventory in some areas. In addition, the weaving market in June has improved slightly compared with May, especially at the end of June. There has been a reversal, with foreign trade orders increasing in volume and gray fabric shipments increasing significantly. The international crude oil and polyester raw materials are warm, and the demand side has partially improved. Can it help the polyester filament market counterattack?
Indeed, starting from this week, polyester filament has also experienced a surge!
Since April, polyester filament has started a weekly promotion model until Last Tuesday, a total of 10 sales were held in just three months. After each promotion, the price will increase slightly on the second day, but overall it has remained stable. However, a new situation has emerged after the recent promotion. The three-day supplementary increase of polyester filament has gradually made up for the previous decline. On the second day of the promotion, the price of polyester was “raised” again. The promotion price reduction range was 200-300, and the three-day price The increase has exceeded 300, and this time and again, it is basically still showing an upward trend! At the same time, the production and sales situation is completely different. On June 28, although the price of polyester filament remained stable, the overall trading atmosphere in the Jiangsu and Zhejiang markets was acceptable. The production and sales of better factories could reach more than 150%-300%, and the production and sales of some poor factories were at 60%. -around 90%. There is no promotion or price increase, but the production and sales of polyester filament can still exceed 100. This is a rare thing. The production and sales of polyester filament have improved, which has provided impetus for price increases.
However, can this rise be sustained?
The editor believes that cost pressure is definitely a very important driving factor in the current round of price increases for polyester filament. From the perspective of polyester raw materials, the current supply and demand structure of PTA is slightly stronger, and it is still in a state of destocking in June. However, due to the expected start-up of Yisheng new materials, and the recovery of overseas demand, it will have a conductive effect on domestic finished product inventory digestion and raw material replenishment. It has not yet taken effect, and the conditions for the phased transformation to a strong driver are insufficient.
But currently, as far as the profit of polyester filament is concerned, its current profit is not ideal and it is on the verge of losing money. Especially DTY has already suffered losses, and manufacturers are not willing to raise prices. It’s also relatively strong.
But from the demand side, although there are currently four-sided spandex and other related spandex on the market Due to the rush for fabrics, gray fabric inventories in some factories have been transferred. However, most fabrics have been slightly accumulated, and the terminal demand side has not shown substantial improvement. The current shortage of containers and rising sea freight will still affect the export situation. Considering that Wujiang, Jiaxing, Guangzhou, and some parts of Shandong downstream are affected by power restrictions and environmental protection, which has caused downstream factories to limit production and the production reduction phenomenon is still continuing. In the next July, downstream weaving may be expected to reduce production and load, and it is difficult to have substantial demand. Get better.
In general, although the international crude oil and polyester raw materials have been operating strongly recently, the demand side is limited and restricts polyester. The main driving force for the upward trend of filament yarns is that although the profit of polyester filament yarns is relatively low at present, the inventory is relatively high. Demand and inventory are restricted in the short term. Although the absolute price of polyester filament yarns is low, it may be difficult to see a rapid counterattack. , factories may maintain stable sales and focus on shipments. </p
