On May 9th, the POY 4+2 meeting was held again. Since the product selling price was already at a serious loss based on the raw material cost on that day, the meeting decided: Starting from the 10th, the prices of low-priced and serious loss-making varieties will be appropriately increased, especially for coarse-denier POY silk. , unified pricing. POY effective price from May 10th: 6100 + processing fee (300D + 700 yuan/ton, 150D + 1200~1300 yuan/ton, 75D + 2100 yuan/ton).
Of course, the market response was not unexpected. As expected by polyester filament manufacturers, on the 9th, the production and sales of mainstream polyester manufacturers broke through the previous deadlock. The average market production and sales rose to about 140%; some manufacturers’ production and sales reached 150% and 200%. Even 300% level. On the 10th, polyester filament manufacturers, especially POY mainstream manufacturers, raised the price of POY coarse denier yarn by about 50-100 yuan/ton; although the increase was not large, it ultimately broke the polyester filament market in the past month. falling dilemma.
I also heard that polyester manufacturers are also actively seeking new pricing models! Due to the different pricing models, sales strategies and actual conditions of various polyester factories, when prices rise, everyone works together to raise prices; however, when the market falls, they panic and carry out promotions. Although there are industry gatherings such as POY 4+2, some market participants pointed out that it is necessary to set up a closed-door meeting of the polyester industry to unify ideas as much as possible and form a relative guidance price range. This is just an idea, but it is also aimed at optimizing and benefiting the polyester industry; however, whether it can ultimately be realized is a long-term process.
For now, I believe everyone is still paying close attention. With the role of conferences and the improvement in production and sales, is the market really going to rebound? Will it become the “life-saving straw” for polyester filament in the near future?
In fact, the author previously wrote in “International Oil Prices “Dive”! Commodities set off a wave of bottom-down decline! Is polyester filament ushering in a “sad moment”? “The three negative factors analyzed at the end of the article; at present, these are still major negative points that restrict the rebound of polyester filament prices.
The first is naturally the negative cost factor. The first thing that must be mentioned is the recent downturn in the upstream raw material ethylene glycol market. In particular, the ethylene glycol electronic trading on the 10th dropped by the limit at the end of the trading session, down nearly 4.01%; the focus of spot prices is also on the holiday. Days are going lower. After experiencing an early “flash crash” and hitting a five-month low, international oil prices only bottomed out and rebounded slightly for two trading days, and fell again under pressure; along with concerns about slowing demand growth and the continued rise in crude oil production, bulls Doubts are growing about whether production cuts will solve the oversupply problem. Under the constraints of downward international oil prices, both the raw material PX and the polyester raw material PTA market conditions are showing a weak downward trend; the market outlook may face the risk of further downward pressure.
The second must be a demand performance shock. Although the recent sales of thin imitation silk, polyester taffeta, nylon and other products in the Shengze market have been good, there are signs of a decrease in subsequent new orders; in addition, the order situation in the weaving markets such as Changshu and Xiaoshao areas There was also a month-on-month decrease. From the perspective of operating rate, according to the survey and monitoring of China Silk City Network, the operating rate of the weaving market in Jiangsu and Zhejiang regions has recently been concentrated around 78.5%, which has dropped by nearly 5% month-on-month. It is expected that the off-season atmosphere in the downstream weaving market may gradually approach.
In addition, the ban on 10,000 water-jet looms in Xiuzhou District, Jiaxing is ongoing. Although according to industry estimates, the supply of raw materials affected by the shutdown of 10,000 water-jet looms does not seem to have a great impact on the domestic chemical fiber market. The consumption of polyester filament will be reduced by 300 tons per day, which will be approximately 100,000 tons per year. However, this is undoubtedly a negative impact on the market situation where polyester production capacity exceeds demand.
The final point is the increased supply of polyester filament itself. It is reported that the two companies after Xiaoshan Hengyi’s new merger, formerly Jiaxing Longteng and Zhejiang Hongjian, will restart on the 11th and 18th respectively. The new companies are Hangzhou Yijing Chemical Fiber and Jiaxing Yipeng. The main production varieties are FDY59/24, 60/24, 65/24, 73/24, 83/36, 83/48, 83/72, 102/72, 111/36, 211/48 and POY270/36, 270/ 48, 270/144, 360/74, 360/95, 520/74, 520/98. As the supply side of the polyester filament market further increases, it will undoubtedly add insult to injury for polyester manufacturers facing demand shocks.
Faced with the pressure of the three “big mountains” of demand, supply and cost, you feel…Can polyester filament really resist? “It hurts my heart, old man”!
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