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    Recent polyester raw material prices are strong performance, especially PTA is a strong rebound

    07-01 2021

     

    Recent polyester raw material prices are strong performance, especially PTA is a strong rebound.


    At the end of the month, two major polyester leaders Yisheng and Hengli announced to reduce the supply of TA long contract in July, Yisheng plans to reduce the amount of long contract by 30%-70%, Hengli plans to reduce 50%. The supply reduction plan has a significant boost effect on the market, PTA main contract prices hit a new high after the year.


    And another chemical fiber raw material spandex market in June quickly pulled up, as of June 29 prices at 75,000 yuan / ton, up 8.07% from the beginning of the month, up 138.10% year-on-year, climbing to a new 10-year high.


    Since this year, the domestic spandex market market rapid rise, as of March 7 40D spandex than at the beginning of the year rose nearly 70%, followed by a small drop in adjustment, in mid-May again opened up the market, climbing to a new high of 10 years, as of June 28 prices in 75000 yuan / ton, up 9.65%, up 138.10%. Domestic demand plus foreign sales double good, to promote the spandex industry to good development. Spandex own supply tension problem is difficult to improve in the short term, some factories still have the intention of exploring up. June 30, a spandex factory again issued a notice, all specifications and then up 2,000-3,000 yuan / ton, July 1 implementation.


    Spandex fabric bottoming out, PTA soaring help, polyester filament to reverse?


    Recent cloth merchants to spandex-related fabric stocking bottom, the impact of some areas of the rapid transfer of blank fabric inventory, coupled with the weaving market in June than in May a small improvement, especially at the end of June is a reversal, foreign trade orders put, the blank fabric to go significantly increased. International crude oil and polyester double raw material warming help, the demand side of the local improvement, can help polyester filament market reversal?


    Indeed, from the beginning of this week, polyester filament also ushered in a wave of rise!


    Since April, polyester filament began a weekly promotion mode, until last Tuesday, just three months, a total of 10 promotions. And after each promotion, the price will be slightly adjusted upward on the second day, but the overall has been in a stable state. But the recent promotions after a new situation, polyester filament three days to make up for the initial decline, the second day of the promotion of polyester and "up" prices, promotional price cuts in the range of 200-300, and three days of price increases have been more than 300, this back and forth, or basically an upward trend! At the same time the production and sales situation is very different, June 28, polyester filament prices remain stable, but the overall trading atmosphere in Jiangsu and Zhejiang market is still good, better factory production and sales of up to 150%-300% above, part of the poor production and sales in the 60%-90% or so. No promotions, no price increases, polyester filament production and sales can still exceed 100, which is a rare occurrence. Polyester filament production and sales have improved, and to provide price increases.


    However, this wave of upward trend can be sustained?


    I think, this round of polyester filament prices, cost pressure is definitely a very important driving factor. From the polyester raw material side, PTA's current supply and demand structure is slightly stronger, June is still in the depot state, but due to Yisheng new material production is expected in, while overseas demand recovery on the domestic finished goods inventory digestion, raw material replenishment of the conduction effect has not yet come into effect, the stage to strong driving transformation conditions are not enough.


    But for now, as far as polyester filament profits are concerned, it is currently not ideal, on the verge of losses, especially DTY has been a loss, manufacturers' willingness to hold up prices is also relatively strong.


    But from the demand side, although the current market appeared on the four-sided bullet and other related spandex fabric grabbing event, the local factory of the blank fabric inventory transfer, however, most of the fabric in the process of a small accumulation of storage, the end demand side did not appear substantial improvement, the current container shortage and high shipping costs will still affect the export situation. Consider downstream Wujiang, Jiaxing, Guangzhou, Shandong, some areas are affected by power restrictions, environmental protection, resulting in downstream factories to limit production, production cuts continue, the next July downstream weaving or production cuts to reduce negative expectations, demand is difficult to have a substantial improvement.


    Overall, it seems that although the recent international crude oil and polyester double raw materials firm running, but the demand side is limited for the main driving force to limit polyester filament upward, the current polyester filament although profits in a relatively low position, but inventory in a high position, the short-term demand and inventory constraints, polyester filament absolute price although low, but it is difficult to appear fast reverse market, the factory or maintain a stable plate shipments.


    Source: Business News, silk network, Longzhong information, network

     

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    ADDR:Huanchen Development Zone, Jiapu Town, Changxing County, Zhejiang Province, China.

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