Negotiations between Russia and Ukraine in Belarus have concluded, with the two sides finding possible points of consensus in the future. The Uzbek side stated that the peace talks did not achieve the expected results and received some signals; the two sides mainly discussed the ceasefire issue and all parties will return to consultations.
As there is room for negotiation on the Russia-Ukraine issue, today has entered the first day of the traditional peak season “Golden Three”. Yesterday, polyester yarn once again ushered in a promotion, and the effect of this promotion was not very satisfactory, with mainstream production and sales at 30% – Between 50% and 50%, it is clear that the peak season is approaching, but it is still on sale. What kind of medicine is sold in the gourd of this polyester factory?
What about the agreed cost support?
At present, only crude oil is rising on the polyester cost side, polyester yarn is stable, and other bulk commodities are declining. PTA spot price fell by 110 yuan/ton yesterday, and PTA’s profit is not enough. Currently, PTA’s loss has expanded to 327 yuan/ton. tons, month-on-month losses have expanded by 251 yuan/ton. With PTA profits showing a cliff-like decline, the probability of enterprises jointly limiting production in the later period is relatively high.
Since the Spring Festival, the operating rate of polyester equipment has remained above 85%. The strategy chosen for polyester filament price changes is to stabilize it and increase it as soon as it can. However, in order to achieve the effect of destocking, it has to temporarily promote for one day. , and then raised the price the next day, it succeeded in making the profit of polyester filament look considerable. Therefore, from an upstream point of view, polyester yarn prices are relatively strong if they can remain stable now. Although downstream production and sales are sluggish, it is understandable that they have just concentrated purchases two days ago.
In short, for the upstream raw material PTA of polyester yarn, the current situation is to use production cuts to slow down the overcapacity situation and gradually increase its own profits, while polyester filament adopts a “stable” attitude and slowly raises prices.
In terms of demand, it remains to be seen
Judging from the momentum of upstream crude oil exceeding 100, the price increase of polyester filament seems to have some confidence, but whether it can continue to rise depends on whether downstream weaving companies buy into it.
Recently, due to the slow resumption of work by weaving enterprises, the textile market has started for more than half a month. The current operating rate of looms in Jiangsu and Zhejiang is only 64%. Compared with the same time last year, the operating rate of weaving machines is generally more than 80%. The operating rate is low. Even if the polyester market changes greatly, Weaving companies just buy and use as they go. If they really want to stock up on goods, it can be said that they are digging a hole for themselves and jumping into it.
And due to the conflict between Russia and Ukraine, geopolitical tensions are once again tense. Foreign trade orders are more about the control of the conflict, and there is still a lingering epidemic. Although the vaccine has been out for a long time, textile companies still have to “see” when accepting orders. Eat every day.”
In general, as long as the Jinsan order does not hold back the downstream demand, the possibility of polyester price increases in the future is not small. As long as there is appropriate stimulation, it is expected that the acceptance of raw materials by weaving enterprises will gradually recover in the near future, and the procurement node for downstream weaving enterprises will arrive at the end of the month, which is the traditional peak season for gold, silver, and silver. This will inevitably attract weaving enterprises to purchase raw materials, and may stimulate the downstream industry. Recovery of market orders.
</p
