Introduction:
August is the traditional low season for demand, polyester filament production and sales are sluggish, corporate inventories continue to increase, and the frequency of promotions accelerates. After a concentrated promotion last Friday, on August 25 Polyester filament yarn continues the preferential shipping model, but terminal demand is sluggish, user purchasing intensity is not strong, and polyester filament yarn production and sales data are poor.
As shown in the figure, the polyester filament market has fluctuated downwards since the second quarter. Especially from the end of April to the end of June, polyester filament sales have been frequent and the sales have ended. After the price recovery, periodic repeated promotions also caused polyester filament to fluctuate in a range. Supported by the cost side at the end of June, many autumn and winter fabrics were also started in advance. Boosted by this, polyester filament showed a slight upward trend. However, due to the reality of sluggish demand, polyester filament lacked momentum to continue to rise, and it repeated after mid-July. Promotional mode. August is the traditional low season for polyester filament demand, and some order demands have been overdrawn in the early stage. Therefore, the market has started to decline due to high polyester filament inventory and low demand.
Figure 2021 price comparison of mainstream polyester filament models
Source: Longzhong Information
During the month, the average daily production and sales of domestic polyester filament remained at 30-50%, and there were 4 large-scale profit promotions during the period. During the promotion period, the production and sales were not as good as the industry expected. The average daily production and sales rate of the two rounds of promotions in the middle of the month was around 200%, and the promotions at the beginning of the month and today failed to exceed 100%.
Source: Longzhong Information
Mid-month, polyester filament Leading companies have successively announced production reduction plans. Under the expectation of supply reduction, polyester filament yarns are still offering profit promotions. Although downstream users are cautious about the market outlook this time, they are worried about the tightening of supply in the later period and the price is expected to rise. Therefore, they are moderately covering their positions, as shown in the table above. The average daily production and sales of polyester filament in the third round of promotions are close to 200%, and the production and sales of some companies are between 300% and 500%. Today’s promotion is less than a week after the last round of promotions, and downstream users have not yet fully digested the inventory. At present, terminal weaving is also facing the dilemma of scarcity of orders. The inventory of gray fabrics is increasing. The inventory realization situation of weaving and texturing companies is not good, and funds are tight. The scale of procurement has shrunk and the frequency of procurement has slowed down.
Figure 2 Comparison of polyester filament and terminal weaving inventory conditions
Source: Longzhong Information
As shown in Figure 2, the inventory of polyester filament and terminal weaving products shows an upward trend, while the inventory of weaving raw materials has continued to decline since the third quarter, which also confirms the downstream trend. There is a trend of reduction in the scale and frequency of weaving purchases. The repeated epidemics at home and abroad have caused greater resistance to textile and clothing exports, while domestic demand is sluggish, and end-use weaving companies are struggling. At present, there is a trend of reducing the load on looms in many places, and some companies with high inventories have temporarily stopped. Even if the price of raw materials is at a low level, end-users There is no way to stock up on large quantities of goods. At present, most users just need to purchase. When polyester filament is on sale, most purchases can only be made within a week. Frequent promotions may not change the current predicament of polyester filament yarn. However, as the inventory pressure of enterprises increases, promotion is an effective means of shipment. Polyester filament yarn enterprises are currently in a dilemma. If there is no other major good news to boost, according to Judging from the current promotion results, there are still expectations for profit-making shipments at the end of the month.
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