Since mid-May, black commodity futures have finally recorded a sharp rebound. Coupled with the strong increase in international oil prices, both arrows have fired simultaneously, driving the polyester raw material market to rebound significantly. With the benefit of cost boost and rising demand, polyester filament yarn Naturally, it was a beautiful “turnaround”!
The inspirational source of this polyester “victory” must be international oil prices!
As data from the U.S. Energy Information Administration (EIA) showed that U.S. crude oil inventories fell the most since 2016, after Kuwait and Iraq expressed support for extending the production reduction agreement, Venezuela also expressed support, while Saudi Arabia and Russia, the world’s two top crude oil producers, also expressed support. A joint statement has also been issued stating that they support extending the production reduction agreement until March 2018 to help solve the problem of oversupply. Stimulated by many positive factors, the enthusiasm for crude oil speculation has been ignited, and international oil prices have risen strongly. As of the close of trading on the 19th, U.S. WTI crude oil June futures closed at $50.33/barrel, a surge of nearly 5.96% since the week of the 15th; Brent crude oil July futures closed at $53.61/barrel, rising sharply in a week 5.53%.
The most outstanding performance in this “victory” is none other than ethylene glycol!
In the past week or so, ethylene glycol has been moving forward like a “cheating”; for ethylene glycol, which has dropped by 2,000 yuan per ton since the Spring Festival this year, the current market situation can be described as both arrogant and domineering. In particular, the electronic trading of ethylene glycol has hit the daily limit for several consecutive trading days and closed at the daily limit many times. This has greatly boosted the market atmosphere. Bulls on the market have been encouraged. The focus of transactions has been repeatedly negotiated. The spot price has continued to rise and soared. On the 19th, it rose sharply by 390 yuan/ton in a single day. Up to now, the spot price of ethylene glycol has jumped from below 6,000 yuan to above 6,500 yuan/ton in just ten days, and the external price has also risen accordingly.
This round of PTA as a companion runner can be regarded as a breakthrough!
In this round of gains, although the PTA market performance is not as eye-catching as ethylene glycol, it has also broken through the weak predicament and shown an upward momentum. Relying on the strength of crude oil and the recovery of funds, PTA futures performed more directly, closing higher for several consecutive trading days and soaring; the spot price also continued to rise following the futures, with internal quotations concentrated at 4850-4900 yuan/ton. about.
Three forces come together, polyester filament has unlimited glory, will it finally be the big winner in this battle?
Whether it is the strong rebound of international oil prices, the desperate counterattack of ethylene glycol, the rise of PTA, the polyester market is booming in large areas, such three forces are coming together, which is definitely an excellent benefit for the polyester filament that once fell into a low ebb. Period of price increase. In addition, the downstream weaving manufacturers may be out of a mentality of buying up and not down, or they may be in a certain pre-holiday stocking cycle; in short, the downstream stocking enthusiasm has been stimulated, and the polyester filament market production and sales have exploded, with average production and sales exceeding 200%. As mentioned above, the production and sales of some polyester manufacturers are as high as 400-500%, and the manufacturers were once closed and reluctant to sell. With the help of upstream and downstream companies, and with the pressure on their own inventories easing, the quotations of mainstream polyester filament manufacturers have continued to rise and rise, breaking the short-term good market trend of “two- or three-day tours” in the early stage.
However, the polyester filament market seems to be “infinitely prosperous” and impeccable, but it is absolutely unexpected that the profit margins of various polyester products have been significantly reduced recently, especially POY and DTY profits have shrunk most significantly. Among them, the profit of POY 150D dropped sharply to 220 yuan/ton, a month-on-month decrease of nearly 750 yuan/ton, and there was not much room for year-on-year increase; the profit level of FDY 150D shrank to varying degrees year-on-year; in addition, the profit of DTY 150D dropped sharply. to 570 yuan/ton, a month-on-month drop of nearly 750 yuan/ton.
During this period of time, polyester filament manufacturers are feeling proud of rising polyester prices, booming sales, and reduced inventories! Or are you feeling melancholy over the sharp shrinkage in profits? However, polyester manufacturers, who are filled with joy and sorrow, ultimately need to be concerned about whether downstream manufacturers will continue to pay for the increased price of raw materials!
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