After November, rounds of rising prices are continuing to ferment in the polyester market. However, while the market is already thrilling, the surge in raw materials is only the beginning. What is even more frightening is that polyester factories have begun to announce plans to reduce and suspend production. . In the past few days, while weaving bosses have received daily price increase notices from chemical fiber factories, they have also been informed by some polyester factories of their plans to reduce and suspend production during the Spring Festival.
A polyester factory stated that in order to respond to the country’s call for supply-side reform, under the active guidance of industry associations, all polyester factories are required to conduct orderly production reductions or maintenance during the spring. After discussion and research, it was decided: from January 2017 It will begin to gradually reduce production on February 10th. By February 15th, 16 lines will be shut down, accounting for 50% of the total production capacity. By February 15th, production capacity will be gradually restored. Please make preparations for all customers in advance.
The polyester market is going crazy, and polyester factories have become “money printing machines”! If we don’t step up production, but now the factory’s plan to reduce production and suspend production is revealed, what’s the intention?
The market for polyester has skyrocketed, and polyester factories have become “money printing machines”!
Since November, polyester filament has been strongly supported by costs, hitting a new annual high during the month. Due to active funds in the commodity market, PTA futures once shot up to 5,360 yuan/ton. During the month, due to the unexpected shutdown of Jiaxing Petrochemical’s 1.5 million tons/year unit and the sudden shutdown of Hailun Petrochemical’s 1.2 million tons/year unit, PTA supply and demand fundamentals showed a tight pattern. At the same time, expectations for the implementation of crude oil production restrictions increased, driving oil prices to surge. , boosting PTA prices. The domestic ethylene glycol market has increased by more than 18% since October. Polyester filament is supported by the surge in upstream PTA and ethylene glycol, and the polyester filament factory inventory is low and the operating load is high, which drives the filament price to continue to rise. On the other hand, the surge in orders at the end of the year in the weaving market also adds to the market. fire. Behind the rising prices, polyester factories are also making money day by day.
Since November, the polyester market has begun to experience a rush for goods, and polyester factories were temporarily closed. A salesperson from a chemical fiber factory revealed to the author that weaving companies have been actively purchasing goods from manufacturers recently, and there is no need to worry about selling polyester products at this stage! As of now, the inventories of filament manufacturers in Jiangsu and Zhejiang are generally at low levels, and some manufacturers even have no inventory. Compared with the same period in previous years, this is really a rare thing.
So, has the maintenance node for polyester factories over the years arrived?
The author found through the maintenance time points of some filament factories in recent years that in previous years polyester filament factories usually started maintenance after the end of December.
Maintenance time of some polyester factories during the Spring Festival of 2015
Maintenance time of some polyester factories during the Spring Festival of 2016
Conspiracy or conspiracy? What is the plan of the polyester factory?
“The price of raw materials has skyrocketed for a month, and the factory is making huge profits every day. Who wants to stop production?” This is what a cloth boss said when the author visited the weaving market. Indeed, at a time when the polyester market is skyrocketing, the maintenance node for polyester factories over the years has not yet arrived. Why do polyester factories release news about equipment maintenance in advance? What are their plans? The author deliberately went back and read the entire content of the reminder text message, and I understood it to mean two things: 1. The inventory itself is low, and with the reduction in production and suspension of production, the supply will be even tighter; 2. The plan to reduce production and suspension of production has been released. The market will definitely not fall in the future. So stock up before it’s too late! The polyester factory is full of “routines”…
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