Introduction: This year’s “Golden Nine and Silver Ten” has made nylon products rise five times a month, becoming the “king of price increases” among many chemical fiber products, with unlimited success. Recently, polyester filament has also followed suit, and the deadlock has been broken…
A wave of price increase notices is coming!
It’s really going up, polyester filament breaks the deadlock!
On the 25th, the quotations of mainstream polyester manufacturers in Jiangsu and Zhejiang began to increase. On the 27th, the trend of mainstream factories increased steadily. In some areas, the price of some specifications of POY increased by 50-100 yuan/ton, FDY increased by 50-100 yuan/ton, and DTY increased by 100 yuan/ton. -200 yuan/ton increase, with some in-demand varieties increasing significantly.
Many market participants also stated that, similar to the rising momentum of nylon products, the improvement in the current round of polyester market is mainly due to good fundamentals. On the 24th, polyester sales were able to boost overall production and sales to over 100, igniting this wave of rising prices. In addition, with both raw materials and demand being favorable, it is “reasonable” for polyester filament prices to rise.
Crude oil rose steadily, reaching a new high since April 17
As the Organization of the Petroleum Exporting Countries (OPEC) previously hinted that it would extend the production reduction agreement until the end of 2018, international crude oil prices have risen steadily this month. As of October 26, Brent crude oil futures for December closed up 1.47% at $59.30/ barrels, hitting a new high since July 3, 2015. WTI December crude oil futures closed up 0.88% at $52.64 per barrel, hitting a new high since April 17. The crude side performs well and creates good peripheral space for the polyester filament.
Spot supply is tight, ethylene glycol regains lost ground
In the first three days of this week, ethylene glycol spot prices surged strongly, with prices rising by 300 yuan/ton. Recently, affected by the closure of the terminal, ethylene glycol has not been smoothly stored in the warehouse, port inventory has dropped significantly, and the supply of goods on the market has shrunk during the delivery period. This has led to the recent sharp rise in the spot price of ethylene glycol. Since October, the guiding role of ethylene glycol in the market has weakened. Following the ups and downs of bulk commodities, the recent spot shortage can be said to have injected a boost into the ethylene glycol market.
High construction and low inventory, confidence remains for price increases
Since the beginning of this year, good cash flow has kept the load of polyester manufacturers at a relatively high level, above 80%, an increase of 10% compared with the same period last year. Under such high operating conditions, the load of polyester factories has been at a relatively low level. Specifically, the current overall polyester market inventory has dropped slightly to around 10-19 days; FDY inventory is concentrated at 10-13 days, POY inventory has been slightly reduced to around 8-11 days, and DTY inventory has slightly dropped to 19-19 days. Around 28 days.
Double Eleven is expected to support, terminal stocking is active
Recently, Changxing’s textile, printing and dyeing, and chemical fiber industry chains have been forced to limit production, and the elimination of water-jet looms in Wujiang has been gradually implemented. Shaoxing, Xiaoshan, Guangdong and other places have also introduced relevant policies to eliminate backward production capacity. The weaving market is still expected to have tight supply in the fourth quarter. In addition, “Double Eleven” is half a month away. Many downstream e-commerce companies have begun to stock up, and the stocking volume is large. According to Hengshan Yi E-commerce It said that the stocking volume this year will be three times the usual sales volume. Based on this, the demand for upstream raw materials can still be guaranteed in the near future, which is also one of the driving forces for this round of price increases.
The editor wants to say
Today’s market is always unpredictable, but fortunately, the cold winter is expected to be strong this year, coupled with the arrival of Double Eleven, the “Hand Shopping Festival”, both the raw material and fabric markets have certain performance opportunities. In November, There is still hope for polyester filament. Of course, whether the “mad cow” market situation in the fourth quarter of last year can be repeated depends on the follow-up of terminal demand.
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