U.S. stocks surged 7% at the opening
On March 24, local time, U.S. stocks continued to open on Tuesday trading day After several weeks of “roller coaster” mode, the Dow Jones Industrial Average rose by more than 1,200 points at the opening on the 24th after falling nearly 600 points on the 23rd. In addition, the S&P 500 Index and the Nasdaq Index both rose by more than 5.5% shortly after the opening.
U.S. stocks experienced an epic surge, but crude oil, PTA, and ethylene glycol did not keep up with the rise.
On the 24th, New York crude oil April futures rose by US$0.65, settling at 24.01 yuan/barrel; Brent May futures rose by US$0.12, settling at 27.15 yuan/barrel.
In terms of PTA and ethylene glycol, the opening performance of futures was not good, and they still maintained a low and volatile consolidation pattern. Crude oil, PTA, and ethylene glycol still lack rising momentum despite positive stimulation. The key reason lies in the weak fundamentals of the downstream polyester market.
Polyester market falls below floor price
Polyester filament, as the mainstream product in the polyester market, has been devastated in the previous “battle”, and its price has reached the “floor price” . Starting from the end of the year, due to the high inventory situation of polyester filament and the serious lack of downstream demand, the price of polyester filament began to decline in a “waterfall” style. Up to now, the price focus of various polyester filament products has continued to decline, and many manufacturers have discounts and promotions. The price of FDY products is around 5,950 yuan/ton, the price of POY products is around 5,450 yuan/ton, and the price of DTY products is around 7,500 yuan/ton.
Polyester production and sales have been in a downturn recently, and prices have been falling, falling below the low levels in recent years. Every time I thought it was close to the bottom price, it would fall again, and market confidence was severely hit.
9 million meters of a certain brand order Canceled
Jiangsu and Zhejiang foreign trade markets are seriously hindered
Polyester market prices have fallen below the skyline, and the main reason is poor market demand.
“Foreign trade” has become the hottest word recently. As the epidemic abroad is out of control, foreign trade orders are no longer a question of “can we get a share of the pie?” It’s a question of “is there any”.
It is reported that after the resumption of business in Keqiao, Shaoxing, 78.4% of textile companies said that orders were decreasing, and 64.8% of companies reported that existing orders had been cancelled. Customer cancels. The largest proportion of canceled orders is still foreign trade orders.
According to statistics, the number of confirmed cases of the new crown epidemic worldwide has exceeded 400,000, with Italy, the United States, and Spain being the most serious. Last week, a cloth boss revealed that orders from Italy and South Korea were cancelled. Of course, this is just the tip of the iceberg.
“I really don’t know how to do business this year , I haven’t received any orders since the New Year. The store next door to us has not opened yet. There is no business anyway, so there is no point in opening it. I have a friend who is engaged in foreign trade in Hangzhou. A few days ago, he exported an order of 9 million meters to Orders for a certain brand in Europe and the United States have been cancelled, the market is so bad, they have taken a break for the past two days, and nearly 60% of Hangzhou’s foreign trade has closed down.” A trader sighed helplessly.
Take Hangzhou, a major foreign trade city, as an example: In 2019, Hangzhou’s total exports It reached 361.27 billion yuan, ranking third in the province after Ningbo and Jinhua. Affected by the domestic epidemic, from January to February 2020, Hangzhou’s total foreign trade import and export volume was 73.28 billion yuan, a year-on-year decrease of 9.5%, and total export volume was 43.13 billion yuan, a decrease of 16.4%. Among them, processing trade was greatly affected, and the total import and export volume of processing trade 7.77 billion yuan, a decrease of 27.3%. Looking at each month, the city’s total exports dropped most significantly in February, with a drop of 60.6%.
Hangzhou’s foreign trade is the epitome of the national foreign trade market, but it has also sounded a “wake-up call” to the market. With internal and external worries, how to break through the difficulties in the foreign trade market is the current difficulty. Solve the problem.
The outlook for the foreign trade market is worrying, and domestic demand has dropped both in volume and price. Therefore, many cloth bosses have come up with the idea of cutting production to protect prices. According to statistics from the China Silk City Network, the current operating rate of looms in Jiangsu and Zhejiang is around 80%, while the inventory of gray fabrics is around 40 days.
�Recently, Trump said that the new crown pneumonia epidemic may last until July or August. If the foreign epidemic spreads seriously and cannot be basically controlled, the textile market will be severely affected, and gray fabric inventories will further increase. At the same time, in the context of severe homogeneous competition, prices will also be further reduced.
The favorable conditions in the financial market can stimulate the trend of the textile market to a certain extent, but the most important thing is still the demand for terminal clothing. Whether it is the U.S. stock market or the global financial futures market, the factor most affecting them at present is the continuous fermentation of the new coronavirus pneumonia epidemic, which has led to countries closing down the country, stagnating logistics, and cutting off demand.
The textile industry is an important part of the global economy, and the trend of the financial market will inevitably have an important impact on it. As far as this epidemic is concerned, the negative effects must be the most direct, but like U.S. stocks, It is still very difficult for the occasional retaliatory rebound in global stock markets to provide immediate and effective positive support for the current textile industry.
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