Apparel / Textiles & Accessories

According to the price monitoring of the business agency, the domestic polyester filament market price has continued to fall in the past month. As of November 18, the price of polyester POY (150D/48F) in mainstream factories in Jiangsu and Zhejiang is 7450-7900 yuan/ton, and polyester DTY (150D/ The price of 48F low elasticity) is 9400-9700 yuan/ton, and the price of polyester FDY (150D/96F) is 7900-8200 yuan/ton.

u3000u3000 The average market price of polyester filaments rose and fell unit: yuan/ton

u3000u3000Products October 19, 2021, November 18, 2021, ups and downs, up and down year-on-year

u3000u3000 Polyester POY (150D/48F) 8988 7716-14.15% 47.12%

u3000u3000 Polyester FDY (150D/96F) 9148 8047-12.04% 47.93%

u3000u3000 Polyester DTY (150D/48F low elastic) 10988 9547-13.11% 36.48%

u3000u3000 Polyester yarn factories achieve the goal of de-stocking through price reduction promotions and promote production and sales in the short term, but they cannot really improve the contradiction between supply and demand. The weak terminal demand is still the main reason for restricting price increases. Specifically, due to the large increase in the previous period, downstream weaving manufacturers regained the mentality of "buying up", hoarding a lot of raw materials when polyester yarn just rose in October. Even though the polyester filament factory promoted twice in November, each time the production and sales volume increased, but the downstream high-priced raw materials have not been used up, and there is no high desire to purchase, but to maintain a cautious view of the market.

u3000u3000 "Limiting electricity and production" caught the entire textile industry chain by surprise, and the phenomena of reduced production capacity, rising raw material prices, and out of stock were reflected from the raw material end to the demand end. In November, after the power rationing was released, although some conditions have improved, the operating rate of the polyester plant has not rebounded as quickly as expected. As of November 17, it remained at around 83%. Jiangsu and Zhejiang regions are the main textile bases, the comprehensive operating rate of looms is around 66.75%, and the start-up of polyester and weaving is still at a low level compared with the first half of the year.

In terms of orders, the polyester terminal weaving link is about to enter the off-season, the "Double Eleven" e-commerce season has ended, and there are currently two months left before the Spring Festival. According to practice, there will be a wave of orders before the Spring Festival, especially for foreign trade. The market will usher in a small climax. However, due to the impact of the epidemic in the past two years, orders are still small, especially overseas orders have not yet increased, and overall terminal demand support is still weak.

In addition, cost support has weakened, and the current oil price has plummeted to a nearly six-week low. Earlier, the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) warned against oversupply problems, superimposed on the reignition of the European epidemic, and new cases increased sharply. In response to expectations of lower market demand, oil prices are under pressure. As of November 17, the settlement price of the main contract of WTI crude oil futures in the United States was reported at $78.36/barrel, and the settlement price of the main contract of Brent crude oil futures was reported at $80.28/barrel. The PTA market is expected to suffer from the accumulation of supply and demand due to the fall in crude oil, and the market remains volatile and weak. The current spot market price is around 4900 yuan/ton, a drop of more than 10% in the past month.

u3000u3000Business agency analysts believe that the power curtailment restrictions in many places in China have been cancelled, and the downstream weaving load has increased. However, the expected order volume is pessimistic, and most factories plan to shut down and reduce production in the absence of orders. At the same time, affected by the weak cost support, the downstream wait-and-see sentiment has increased, and the demand for raw materials remains rigidly purchased. It is expected that the polyester filament market will continue to fluctuate downward.