There is news that today, major mainstream chemical fiber factories will hold an FDY joint meeting! Polyester filament, which has been booming recently, may usher in a new round of price increases. At the same time, POY also said it would follow up!
After the G20, the “good news” joint meetings have not stopped! On October 11, at the POY (4+1) mainstream manufacturer market seminar held in Xiaoshan, polyester bosses reached a consensus:
1. The price of crude oil has risen significantly, boosting downstream enthusiasm for replenishment;
2. The production and sales of polyester products have rebounded across the board, and prices in the industry chain have been “linked”. Not only have POY and FDY increased, but DTY and fabric linings have also increased;
3. Weaving is in the peak season, and the operating rates of various types of weaving are relatively high;
4. The inventory level of polyester filament in polyester factories is low, and the supply of some product specifications is obviously tight. Therefore, everyone reached a consensus at the meeting that they are still optimistic about the mid- and long-term polyester filament market. In the near future, the market will implement “small steps and slow growth, and the atmosphere will be prolonged” to maintain the healthy operation of downstream weaving and achieve upstream and downstream stability. Harmony and win-win.
Polyester filament prices rose slightly last week, and downstream profits shrank
Driven by a series of positive factors such as the joint meeting and rising crude oil, the polyester filament market last week basically rose slightly. For example, 272/144poy rose from 6900 at the beginning of the week to around 7000; 280/288 had light. The flat increase was slightly larger, from 7600 at the beginning of the week to 8100 at the end of the week, a huge increase of 500 yuan per ton, mainly due to the clearing of Shenghong’s inventory and the sharp rise.
Low stretch yarn also rose simultaneously, 150/144 rose from 8700 at the beginning of the week to around 8900 at the end of the week, and 150/288 glossy flat rose from 9500 at the beginning of the week to around 9900 at the end of the week. The texturing factory is more profitable, with a processing fee of around 1,800, low inventory, glossy and flat products, basically zero inventory for POY and DTY, and mainly cash transactions without credit.
However, taking the Shaoxing area as an example, circular knitting costs have shrunk significantly, dty has increased by about 500, while cloth prices have remained unchanged, and terry knitting costs have dropped from 1,300 to about 800. However, because the market orders are relatively easy to sell, the cloth has also Cash transactions are mainly used, and the weaving fee is still not lower than that of other semi-gloss products, so the enthusiasm of terry machine manufacturers is still high. The double-sided machine is also glossy and flat. The weaving fee has dropped from 1800 to about 1300, but because there is no credit According to reports, the circular knitting machine factory is still very active in production, and it is estimated that the peak season of this product will still be about one month!
The editor believes that the rise in polyester filament last week was still driven by crude oil and the joint meeting. However, judging from the overall downstream market situation, rising cloth prices are still difficult and market demand has not improved.
As for crude oil, although OPEC has reached a preliminary consensus, it is related to the fundamental interests of all countries, and there is still a long way to go to achieve a substantial production freeze; and the recent crude oil inventory is still at a historically high level, which is why institutions such as “Goldman Sachs” A major reason for the decline in oil prices.
Therefore, the editor believes that if there is no substantial and positive promotion, the “joint meeting” will become a paper talk. How far the price increase of polyester filament can go will ultimately depend on the status of downstream orders.
