Yesterday, the editor’s circle of friends was once again flooded by people from the chemical fiber industry! The long-lost conversation reappears. Is polyester filament going to cause another “bloody storm”?
Crude oil rises? Is PTA going up? Is ethylene glycol rising? How have the three major markets grown? Let’s look down:
The production reduction agreement is heating up, and Mebu-Belcium Oil is running at full speed!
On May 15, Saudi Energy Minister Fateh stated that “Saudi Arabia and Russia have always recommended extending the production reduction agreement.” It also stated that the crude oil production reduction agreement needs to be extended, and the expiration date of the agreement should be the first quarter of 2018. A decision will be made at the May 25 meeting. And Russia issued a statement that it would consult with other countries before May 24.
After this news was released, Mebu oil prices surged in the short term! As of 17:30 Beijing time, the international Brent crude oil futures price was US$49.10 per barrel, up US$1.26, or 2.63%. U.S. West Texas Intermediate crude oil futures were at $49.12 a barrel, up 1.28 cents, or 2.68%.
Boosted by the rise in crude oil, PTA begins a rebound!
In the morning of the 15th, PTA’s main contract 1709 rose slightly after opening. In the afternoon, the trend was stronger and the increase expanded. Finally, it closed up 50 points at 4886, an increase of 1.03%. Trading volume fell back to about 772,500 lots, and positions were reduced by 24,060 to 1,962,762 lots. The focus of negotiations in the PTA spot market has shifted upward simultaneously, and the market buying momentum is acceptable.
Ethylene glycol returns strongly, sealing the daily limit in the afternoon!
Ethylene glycol, which has been fluctuating at the bottom recently, has also changed from its sluggish state and made a strong comeback. On the 15th, the main ethylene glycol contract of Huaxi Village Commodity Exchange, 1707, kept rising all the way, and the daily limit was sealed in the afternoon. It finally closed at the daily limit of 5848, an increase of 224 points, or 3.98%; 85,990 hands were traded, and positions increased by 1,356 hands to 173,862 hands.
The market is “three bombs”. If polyester filament does not rise at this time, when will it wait?
Although crude oil has shown a mild rebound trend recently, PTA and ethylene glycol have not followed suit. This has also led to a bumpy rise in polyester filament yarns in the early stage. Most of them were “one-day trips” or “three-day trips”. The “Day Tour” market has ended.
However, driven by several rebounds in production and sales, the inventory pressure of polyester manufacturers has been released. At present, the overall inventory of the polyester market has slightly dropped to around 13-20 days; among which, POY inventory has been reduced to 9-15 days, and FDY inventory has fallen. to around 13-19 days, while DTY stocks are concentrated around 21-31 days. Traveling lightly will undoubtedly give polyester manufacturers the confidence to increase prices in the future.
Secondly, although the current terminal fabric market is expected to gradually enter the off-season, the start-up of weaving manufacturers will still remain at a high level in the short term. Under the support of rigid demand, the demand for polyester filament is still supported.
Finally, this OPEC production reduction agreement is a real benefit to oil prices and may support the rise of crude oil in the short term. More importantly, the simultaneous rise of raw materials PTA and ethylene glycol has highlighted the current cost pressure on polyester manufacturers. As processing fees continue to shrink, when will the polyester filament not increase at this time?
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