Since May, polyester raw materials have encountered “extremely cold weather”!
The “big brother” of crude oil is at a loss. Since April 17, international crude oil has been falling for half a month. As of May 4, crude oil WTI closed at US$45.31/barrel, a drop of 18.65 from the closing price of US$53.76/barrel on April 16. %, the continued decline in oil prices at this stage has given bad news to the polyester market.
PTA fell in response. On the 20th, the main force of PTA broke through the 5,000-point mark in one fell swoop. All the previous gains were given back. The two-and-a-half-month decline ate up the gains of the previous five months. Compared with this year’s high of nearly 6,000 points, it dropped by nearly 1,200 points. , the avalanche of decline directly broke the myth of PTA price surge since the G20 in 2016. PTA returned to before liberation overnight, and by May 8, the internal price fell to 4,680 yuan/ton.
Ethylene glycol is also following closely behind. Currently, ethylene glycol is in a downward trend, and there is no clear signal to stop the decline in the downward channel. As of May 4, the main contract price of ethylene glycol in the electronic trading market is 5,905 yuan/ton, which is lower than that in early February. It fell by 2,395 yuan/ton, or 40.56%. The mainstream price in East China was 5,870 yuan/ton. This deep drop has basically given up the previous gains.
Polyester filament also cannot escape its “tragic fate”! Since the May Day holiday, under the pressure from upstream and downstream, the polyester filament market has been declining for many consecutive trading days; especially POY manufacturers.
When everything falls, it alone rises! There is still a little bit of red among the green bushes!
I originally hoped that the market would change for the better in May, but God seemed to have made another joke on the market. The collective “diving” of bulk polyester textile raw materials has once again chilled the hearts of industry insiders! Fortunately, when everything falls, it alone rises! There is still a little bit of red among the green bushes!
The market price of spandex rose sharply in early April. After the Qingming Festival, manufacturers increased their quotations by RMB 1,000-1,500/ton, and some varieties increased by RMB 2,000/ton, reducing the supply of low-priced goods on the market.
After the May Day holiday, many manufacturers once again raised their quotations by about 1,000 yuan/ton on the 2nd, such as Huafeng, Xiaoxing, Yadi, Shuerzi, Blue Peacock, Du Zhong, etc.; some have also raised prices since May 1 It has already been raised, such as Taihe New Materials. On the 5th, some spandex companies in Zhejiang continued to increase their ex-factory quotations, with 20D/30D/40D varieties increasing by 500 yuan to 1,000 yuan per ton.
The current price of spandex has reached a new high in the past year, with increases ranging from 20% to 30% since the fourth quarter of last year. Relevant manufacturers said that driven by rising raw material costs, companies have a strong willingness to adjust prices. For a time, the popularity of spandex against the market trend added a little “turmoil” to the originally relatively calm market.
High cost game and low demand, can spandex continue to lead the market outlook?
From a cost perspective, the PTMEG market maintains a high level of consolidation, and the main manufacturers on the market are still willing to support the market. Many terminals are cautiously optimistic, and the market outlook is still bullish. However, on the demand side, market transactions have not improved significantly, and orders on the market are following up. The speed is slow, downstream can be used as needed, and the manufacturer’s inventory has increased.
At the end of April, the actual transactions of some supply sources on the market had a narrow profit margin, which was basically negotiable. Moreover, the market prices were relatively chaotic, and all parties’ expectations for the market outlook were unclear. Entering May, the mainstream negotiation price in the Jiangsu and Zhejiang regions is 43,000-45,000 yuan/ton for 20D, 41,000-42,000 yuan/ton for 30D, and 36,000-37,000 yuan/ton for 40D. There are some high-end prices quoted higher, but some traders are shipping. flexible.
At present, the spandex market is a high-cost game with low demand. Although the demand in the terminal weaving industry is relatively sluggish, resistance to the rise of spandex still exists. However, if the raw materials continue to remain strong, then under the pressure of high costs, the market price of spandex is likely to rise again.
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