This week RCEP officially comes into effect, dyeing factory holidays are postponed, polyester prices have risen for the ninth consecutive time, and it is becoming more difficult to collect textile payments! …
Let’s take a look at what’s new this week!
RCEP officially comes into effect
The implementation of RCEP will help reduce the institutional transaction costs of trade and investment in East Asia, inject new impetus for development into the regional and even world economies, and will become an important platform for my country to build a new development pattern and further promote my country’s implementation of rules, regulations, and management. Institutional opening up in areas such as industry, standards and other fields.
RCEP countries occupy an important position in the world’s textile and apparel exports, accounting for 50.8% of the world’s textile exports and 44.5% of the global apparel exports. RCEP countries are also one of the fastest growing import markets in the world, accounting for 21.4% of global textile imports and 12.4% of global apparel imports.
The editor has something to say: The foreign trade market has peaked at the end of the year, and the “Gold, Three and Silver” are not far away. It is expected that the domestic textile market is expected to pick up.
Dyeing factory holiday postponed
According to the practice in previous years, the Spring Festival holiday in the textile industry will be about 10 days before New Year’s Eve at the latest, and 15 days before the weaving mills earlier. The current holiday news in the market is that some weaving factories and dyeing factories will have a holiday on January 15th, and some weaving factories and dyeing factories will have a holiday on January 20th. So this year’s holiday time is completely consistent with previous years. It can be seen that there is no early holiday this year.
The editor has something to say: There are too many orders, and who would turn them away and have a free vacation if there is business? It is understood that the current textile market has improved compared with the beginning of December, which means a “closed business”.
Polyester filament prices rise for nine consecutive years
Polyester filament has recently started a continuous rise pattern, and the early rise in polyester filament was mostly due to the strong downstream purchasing mentality and demand-led.
As of January 7, 2021, the price of polyester filament FDY 150D is 7,700 yuan/ton, the price of polyester filament DTY 150D is 9,100 yuan/ton, and the price of polyester filament POY 150D is 7,500 yuan/ton. Compared with last month, polyester filament FDY 150D increased by 400 yuan/ton, polyester filament DTY 150D increased by 500 yuan/ton, and polyester filament POY 150D increased by 450 yuan/ton.
The editor has something to say: The cost side is rising and the support is obvious, so polyester filament has to rise.
Textile industry has difficulty in getting money back
Various credit sales methods have always existed in every link of the textile industry chain. Regular customers who pick up cloth from ordinary weaving mills are paid monthly, usually one month, and slower, maybe every two to three months or even half a year. The post-finishing companies are even slower to collect payment, and many of them are paid annually, at the end of each year. Settlement once. The traders’ repayment depends on the signed contract. Most of them pay a deposit in advance, most of them take delivery of the goods with money, and a small amount is left to be settled in 3-6 months.
This year, under the influence of the epidemic, the overall demand and economic recovery are not as good as expected. In addition, due to the influence of the weather, the sales of down jackets are not ideal, and clothing factories have a backlog of inventory, making it more difficult to pay for goods. Therefore, it is more difficult for downstream companies to collect payments. Many cloth bosses said that the pressure to collect payment this year has increased compared with previous years, and the payment for goods has been extremely slow, resulting in difficulties in capital turnover.
The editor has something to say: Textile senior sources revealed that the payment collection rate of clothing companies at the end of this year is between 30% and 50%. Companies that can settle 70% are very good customers and basically will not settle the payment at the end of the year.
Market review
Polyester:
PTA prices continued to rise this week. Major PTA manufacturers have stopped for maintenance, the supply side has shrunk significantly, the market has quickly shifted from overstocking to destocking, and the cost-side oil prices have continued to strengthen. Under the double positive blessing, the PTA market has recovered from the shock and rebounded, and is expected to be relatively strong next week.
Polyester filament prices continued to rise this week. As the price of polyester raw materials increases, the price focus of polyester filament may gradually increase due to cost promotion. However, as the end of the year approaches, the pressure is still high.
PX’s loss this week has narrowed slightly compared with last week, and its current loss has narrowed to US$163/ton. In terms of PTA, its profit has declined this week, and its current profit is around 58 yuan/ton. In terms of ethylene glycol, the loss narrowed slightly this week, and the current loss is US$89/ton. In terms of polyester filament, the price of polyester yarn increased this week, but the amplitude was lower than the increase in cost, resulting in shrinking profits; FDY150D profits fell, and the current profit loss is 11 yuan/ton; POY 150D profits fell, and the current profit is 169 yuan/ton; DTY 150D profits fell , the current profit is 22 yuan/ton.
In terms of operating rate, the average operating rate of PTA was 70.8%, down 2.3% from last week; the real-time operating rate was 70.1%, and the real-time effective operating rate was 79.0%. In terms of polyester, the average load of polyester increased by 0.2% to 85.4%. In terms of weaving, the quantity of gray fabric shipments has decreased, and the recent weaving operation rate has dropped by 3% compared with last week, to around 68%.
In terms of production and sales, the price of polyester yarn in the market has continued to rise slightly this week. Due to this, the downstream has been stocking up. Production and sales have been good many times. Later, the downstream is waiting for the bottom of the year, and production and sales have declined. The overall production and sales are around 70%.
In terms of inventory, according to the statistics of China Silk City Network, the overall inventory of the polyester market is now concentrated at 17-27 days; in terms of specific products, POY inventory is around 17-20 days, FDY inventory is around 17-18 days, and DTY inventory is about 18-26 days.
Weaving:
It can be seen from the Shengze Index of the Ministry of Commerce that the operating rate of downstream weaving enterprises has declined. Domestic sales orders have picked up slightly recently, and orders from the export market have also begun to be released. Compared with last week, the overall number of shipments has increased slightly. With the operating rate declining, the increase in gray cloth inventory has decreased. At present, the weaving operating rate in Shengze area has dropped slightly to around 68%; the inventory of gray cloth has increased to around 33.8 days.
Printing and dyeing:
The activity of the printing and dyeing market dropped slightly this week, and the number of gray fabrics dyed decreased compared with last week. Terminal demand is not good, traders have few orders on hand, and the number of gray fabrics dyed has decreased. In terms of orders, both domestic sales and foreign trade markets were sluggish, and the atmosphere for receiving orders was not good. Affected by this, the printing and dyeing market has seen a decrease in the number of gray fabrics entering warehouses.
The operating rate of printing and dyeing factories increased slightly to 73% this week. Among them, many dyeing factories have experienced liquidation. Most manufacturers have an operating rate of more than 70%, and a few manufacturers have an operating rate of about 60%.
In terms of delivery time, the number of gray fabrics entering the warehouse has increased, and production has become crowded again. The delivery time is about 8-10 days.
Outlook
The polyester market is turbulent this week, and the foreign trade market is also looming. However, the general market is still not very optimistic, and it is expected that the market outlook will still be dominated by finishing.
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