This week, bulk raw materials have been plummeting, Vietnam’s textile and garment industry has actively recovered, polyester factories have launched double promotions, and the market value of the four leading private refining companies has hit a new high. New high…
Let’s take a look at what’s new this week!
Bulk raw materials have plummeted all the way
On the evening of May 19, the National Standing Committee meeting once again issued a call after seven days to ensure supply and stable prices of commodities and curb unreasonable price increases. Relevant departments have taken action one after another to “cool down” the rising trend of commodity prices. Policies have been intensively vocal for many days to effectively respond to excessive price increases. A series of response measures have achieved remarkable results, with nearly a hundred commodities falling in response.
%, ethylene glycol fell by as much as 2.71%, and staple fiber fell by as much as 3.50%.
The editor has something to say: This period of time is indeed a bit sad for textile bosses. The previous promotion did not achieve obvious results, and the epidemic abroad continues to ferment. , foreign trade has been hindered to some extent, and the overall domestic economy has recovered fairly well. However, the terminal textile and clothing industry has not improved significantly, and it is undoubtedly difficult to reverse the current market situation.
Vietnam’s textile and garment industry is actively recovering
Since the beginning of 2021, Vu Duc Giang, president of the Vietnam Textile and Apparel Association (VITAS), believes that due to market demand and the impact of large-scale COVID-19 vaccination in various countries, the Vietnamese textile and apparel industry will be positive in 2021. recovery. In fact, the export value of textile and clothing products in the first four months of 2021 increased by 9%, reaching US$9.51 billion.
The rebound in exports has a huge impact on the operating income and profits of textile and apparel companies. For example, TNG Investment and Trading Joint Stock Company’s operating income in the first four months of 2021 reached VND1.272 trillion, a year-on-year increase of 32%. A representative of the company said that orders have been scheduled until August 2021. According to the plan, TNG proposes that its operating revenue will reach VND 4.798 trillion and its after-tax profit will be VND 175 billion in 2021, an increase of 7% and 15% respectively compared with 2020.
The editor has something to say: The gradual growth of Vietnam’s textile and apparel industry is a very big blow to our country’s textile market, so our country’s textile and apparel industry must also work harder. progress!
The polyester factory has another double promotion
As expected, the polyester factory will have another promotion on May 21, plus The two sales on May 7th and May 13th are already the third promotion this month.
This promotion range is as high as 200-400 yuan/ton. Now polyester factories basically maintain a once-a-week promotion frequency. This promotion should not be It’s the last time this month.
The editor has something to say: Obviously, everyone seems to have figured out the routine of once-a-week promotions at polyester factories. Polyester factories digest inventory and downstream companies buy Cheap silk is the best of both worlds.
The market value of the four leading private refining and chemical companies reaches a new high
On May 13, “Forbes”, one of the world’s most influential and authoritative business magazines, released the list of the top 2000 listed companies in 2021.
A total of 14 Chinese petroleum and chemical companies are on the list, namely: PetroChina, Sinopec, CNOOC, Hengli, COSCO Shipping Holdings, Formosa Petrochemical , Wanhua Chemical, ENN Co., Ltd., Rongsheng Development, China National Chemical, Rongsheng Petrochemical, Hengyi Petrochemical, China Petroleum Engineering Construction, Baofeng Energy.
Oil prices plummeted historically in March 2020. Most refining and chemical units experienced significant inventory depreciation losses. The traditional refining giants Sinopec and PetroChina’s revenue fell sharply, with a total of half a year. The loss exceeded 52 billion yuan. The first half of 2020 was the historical bottom of the refining and chemical industry. The industry was generally suffering losses. However, the market value of the four private enterprises represented by Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, and Tongkun Petrochemical reached a new high. The profits of the leading private refining companies (Rongsheng Petrochemical, Hengli Petrochemical, Hengyi Petrochemical and Tongkun Petrochemical) can still grow by 50%, and their profitability far exceeds the industry average.
The editor has something to say: In the first half of 2020, the entire industry chain of the refining and chemical industry suffered losses, the industry prosperity was at its worst in history, and old and backward production capacity suffered serious losses. And gradually clearing out, private large-scale refining and chemical companies are growing against the trend. The industry has passed the bottom of the boom and is in the initial stage of procyclical upward growth. With supply and demand leading the way, the tight spring is about to be released, and industry performance is expected to continue to rise.
Market Review
Polyester: PTA prices fell sharply this week. As international oil prices fell sharply this week and the terminal textile market gradually entered the off-season, demand for polyester raw materials weakened and PTA prices began to fall. The current PTA internal market transaction discussions are around 4500-4530 yuan/ton.
In terms of polyester filament, this week’s polyester long Silk prices remain stable. Some raw material factories once again conducted price reduction promotions on Friday, which to a certain extent promoted the shipment of raw materials. However, the downstream market has become accustomed to weekly promotions of raw materials, and there is less hoarding of raw materials.
In terms of profit, PX suffered a larger loss this week It expanded slightly last week, and its current loss potential reaches US$106/ton. As for PTA, it is still losing money this week, and its current loss is around 228 yuan/ton. In terms of ethylene glycol, it entered a loss-making state this week, with a current loss of US$1/ton. In terms of polyester filament, the price of polyester filament has stabilized overall this week, but the cost has been significantly reduced, and profits have begun to rise; FDY profit has reached 391 yuan/ton; POY 150D profit has expanded, and the current profit is 758 yuan/ton; DTY 150D profit margin has increased, and currently The profit is 350 yuan/ton.
In terms of operating rate, the PTA weekly average this week The operating rate was concentrated at 76.2%, an increase of 4.2% from last week; the real-time operating rate was 76%, and the real-time effective operating rate was 83.6%. In terms of polyester, the average load of polyester this week was concentrated at 90.6%, down 2.2% from last week. In terms of weaving, the operating rate of weaving manufacturers has recently dropped to about 69%.
In terms of production and sales, polyester yarn transactions in the market this week The atmosphere is relatively sluggish, and the performance of polyester production and sales is average. Only during the polyester factory promotion period on Friday, the average production and sales performance of polyester yarn is better. During the rest of the time, the average production and sales performance is 10-30%.
In terms of inventory, statistics from China Silk Capital Network According to the data, the overall inventory of the polyester market is now concentrated in 12-25 days; in terms of specific products, POY inventory is around 9-12 days, FDY inventory is around 12-16 days, and DTY inventory is around 15-28 days .
Weaving: From the Shengze Index of the Ministry of Commerce It can be seen that the transaction atmosphere in the textile market has been average in the recent period. Raw material prices once again saw price reduction promotions on Friday. This promotion is the third time this month. Promotions have become the norm, but downstream weaving companies are generally not very enthusiastic about hoarding raw materials. Fabric prices have not changed much due to raw material promotions, and overall prices remain stable. As the traditional peak season gradually comes to an end, most of the orders placed in the early stage have been completed, and subsequent orders have not been followed up enough, and the market has gradually returned to calm. Fabrics are not flowing smoothly, inventories are backlogged, and some fabrics have seen slight price cuts. This week, due to environmental protection, the operating rate of some weaving manufacturers has been affected to a certain extent. The operating rate in Shengze area is now stable at around 69%. At the same time, due to the slowdown in market shipments, the overall gray fabric inventory has slowly rebounded to about 41 days.
Printing and dyeing: The activity level of the printing and dyeing market this week Generally speaking, the market conditions are slightly sluggish. In addition, starting from Tuesday this week, dyeing factories in some areas will limit production by 30%, so the operating rate has been slightly reduced.
The traditional textile peak season has officially ended. Under the off-season conditions, orders from printing and dyeing factories have obviously begun to weaken. Because some dyeing factories have many spot customers, “market orders” can satisfy workshop production, and there are still some queues for pressing cards. Products with high elasticity, four-way stretch, and nylon have relatively good orders, while other fabrics lack highlights.
Due to the overall reduction in warehouse entry, some manufacturers have insufficient operating rates. The 30% production limit will not have a big impact. Therefore, the operating rates of printing and dyeing plants are relatively low. It only fell slightly last week to about 78%. In terms of delivery time, the order volume has decreased, but due to some manufacturers limiting production, the overall delivery time has remained stable at around 12 days, and some have exceeded 15 days.
Outlook for the market outlook
May passed very quickly, and it has already reached the second half of the year in the blink of an eye. Judging from the current market situation, what will happen next? The market is about to continue to decline…
Judging from the market situation, the market will continue to weaken in the future…
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