Rise and rise, the magic weapon of crude oil;
Repair repair, the soul of polyester;
It's miserable, textile's heartfelt voice.
Petroleum breaks through seventy-five,
All polyester filament yarns are red.
The high price of spandex is still out of supply,
There is no rice cooker in the weaving factory.
Upstream unilateral price increases,
Downstream has to sell at a loss.
A limerick, for the fans of Global Textile Network! I hope that this wave of price increases will give everyone a cool mood in the hot plum days.
On July 6, the price of polyester filament was raised again! The price of polyester yarn at a large factory in Tongxiang increased by 100-200 yuan today; the price of polyester yarn at a FDY factory in Shaoxing increased by 100 yuan; the price of polyester yarn at a large factory in Xiaoshan increased by 150 yuan; the price of polyester yarn at a large factory in Taicang increased by 100-200 yuan today... …
The price of polyester filament yarn has risen for the seventh time since the end of the tenth promotion, and the price of 10 promotions in 3 months has risen back in just 10 days.
Reasons for the rise of polyester filament
The price of polyester yarn has risen, which is mainly affected by the soaring prices of upstream raw material crude oil and PTA.
The meeting on Monday was originally scheduled to be held at 2 pm London time, but it was not held until two hours after the start of the meeting. OPEC Secretary General Barkindo announced that OPEC+ failed to reach an agreement on the date of the next meeting.
The meeting was decided by OPEC+ last Friday after the decision on oil production was still fruitless. OPEC+ could have passed the recommendation of the Ministerial Advisory Committee JMMC on Friday to increase production by 400,000 barrels per day from August to December, and extend the period of the production reduction agreement to the end of next year. However, the UAE refused to accept and requested an increase in the production benchmark for the country's production cuts, which allowed it to increase its own production by 700,000 barrels per day.
After the news of OPEC+'s cancellation of the talks came out, international crude oil jumped in intraday. Brent crude oil rose above US$77 for the first time since October 2018, and the intraday increase expanded to more than 1%. US WTI crude oil regained US$76 in intraday trading, which also set a new high in the past three years, rising by more than 1% in the day. In the end, Brent's September crude oil futures closed up 1.30% to $77.16 per barrel. The main contract for the first time since October 29, 2018, closed at $77, and hit another 2018 after breaking through $76 on Friday. Closed to a new high since the end of October.
From top to bottom, PTA is also affected, and cost pressures continue to rise. Recently, the PTA spot processing fee is relatively high, so it has been on the verge of loss. At present, the average weekly operating rate of PTA is concentrated at 73.8%, which is a decrease of 1.9% from last week. On July 3, a set of 2.5 million tons of PTA device in East China was shut down, and the maintenance is tentatively scheduled to last for 2 weeks. With the supply reduction of the mainstream PTA, the spot is tight in stages, and the inventory has not been effectively accumulated. In terms of overall costs and supply and demand, PTA has limited short-term downward pressure.
Other chemical fiber raw materials are rising
In addition to the price increase of polyester filament, many chemical fiber raw materials have opened a rising channel, such as spandex and nylon, and the increase is even more amazing. Take 20D spandex yarn as an example. Since April 1st, it has risen by RMB 14,500/ton, an increase of 15.20%. Take nylon POY as an example. Since June 29, it has risen by 650 yuan/ton in a week, an increase of 3.27%.
For the downstream in the off-season, the increase in raw materials is not enough to drive the price of grey cloth. Only when the demand is good, there will be more confidence to increase the price. In contrast to polyester yarns, the current weaving market as a whole has shown a weak trend. The products with better quality products are also stretch fabrics and nylon fabrics. The quality of polyester fabrics is generally not good, and the demand is not good. Although the cost of weaving companies is rising, inventory is also rising at the same time, and price wars are on the horizon. At this time, price increases may be equivalent to losing orders and losing customers. This is the reason why most weaving companies have not responded to polyester yarn since the end of the promotion.
Most of the weaving companies buy raw materials during sales promotion, and the situation of buying up and down is no longer there. Buying on dips is the current purchasing strategy of weaving companies. Just-needed purchase is also a long-standing strategy of weaving companies, so the production and sales of polyester yarns are not high under normal circumstances. In other words, this round of price increases for polyester yarns is still difficult for weaving companies to buy.
Conventional fabric weaving companies said that if the raw material exceeds 1,000 yuan/ton, the grey fabric will definitely increase. So for now, polyester yarns have risen by 600 yuan per ton. According to the current rising trend, it will soon exceed 1,000 yuan, and the price of grey fabrics will follow.
