This week the profits of major polyester manufacturers soared 25 times, “Delta” conquered Southeast Asia, four mainstream polyester factories planned to reduce production together, and polyester factories continued to Welcome promotion…
Let’s take a look at what’s new this week!
Profits of major polyester manufacturers soared 25 times
8 The semi-annual report disclosed by Xinxiang Chemical Fiber in the evening on October 10 showed that the revenue was due to the surge in spandex prices, and the performance in the first half of the year increased by nearly 25 times. Xiao Shubin, secretary of the company’s board of directors, said: “There is zero inventory of spandex products, and you even need to queue up. The epidemic has broken the cyclical fluctuation characteristics of the textile industry, and we need to continue to observe the future fluctuation patterns of the industry.”
2021 In the first half of the year, Xinxiang Chemical Fiber achieved operating income of 4.123 billion yuan, a year-on-year increase of 124.18%; net profit attributable to the parent company was 738 million yuan, a year-on-year increase of 2491.34%; earnings per share was 0.59 yuan, a year-on-year increase of 2495%. The financial report shows that Xinxiang Chemical Fiber’s net operating cash inflow in the first half of the year was 933 million, a year-on-year increase of 6981.86%.
As for the supply and demand situation, Xiao Shubin said: “So far, the company has zero inventory of spandex, and orders even need to be queued; viscose filament has some inventory, mainly because the proportion of previous shipments was larger. The current rate of resumption of work and production abroad is far from enough, so export sales have shrunk, resulting in inventory.”
The editor has something to say: The price of spandex continues to rise, which is inseparable from the rebound in downstream demand. , but the second half of the year that has already begun makes the future of the textile market somewhat unclear.
“Delta” captures Southeast Asia
New type of ” The “Delta” mutant strain has torn apart the “anti-epidemic” defense lines of many countries. The total number of confirmed cases of COVID-19 in Vietnam has exceeded 240,000, and the number of new cases in a single day has basically exceeded 7,000 since late July. Ho Chi Minh City, the largest city and economic center, has become the center of this round of epidemic.
Southeast Asia, where the Delta variant is raging, is currently the region hardest hit by the epidemic. The industrial output of seven Southeast Asian countries has been hit hard, hitting a record high in May last year. In addition to Vietnam, the current situation in Indonesia and Malaysia is not optimistic. Indonesia’s latest epidemic report on August 11, local time, showed that there were 30,625 new confirmed cases of COVID-19 in the past 24 hours, bringing the total number of confirmed cases to 3,749,446. The number of confirmed cases in Malaysia in a single day has exceeded 20,000, and the cumulative number of confirmed cases has exceeded 1.32 million. About 1.2 million Malaysians are currently unemployed. The Malaysian government’s plan to gradually restart production activities when the number of cases drops below 4,000 per day seems to be still far away.
The editor has something to say: These countries are all important textile production and export countries. The epidemic has severely damaged their production, and it is possible for some textile orders to be transferred from these countries to my country.
Four mainstream polyester factories plan to reduce production together
Recently, many polyester factories have issued notices of production reductions, and polyester filament may face a production reduction storm.
Shaoxing’s polymeric filament factory with an annual output of 1.2 million tons began to reduce production by 200,000 tons on August 10. The restart time is to be determined, mainly involving FDY;
Huzhou No. 1 Factory plans to expand the scale of production reduction from August 16, with the total production reduction increasing from 120 tons/day to 270 tons/day, mainly involving polyester filament and short fiber;
A 200,000-ton polymer spinning filament unit at another factory in Shaoxing is scheduled to be shut down for maintenance on August 15, and the restart time is to be determined.
The scale of this production reduction is actually small. The production capacity involved is only 4 million tons, which also includes the production capacity of polyester chips, bottle flakes and polyester staple fiber. After removing the production capacity, the actual production capacity related to polyester yarn may be only about half of the 4 million tons.
The editor has something to say: For the entire polyester industry, the reduction in this part of production capacity will actually hardly affect the entire output of polyester filament. The industry’s destocking will not have a significant effect and will only allow factories that have reduced production to ease their inventories.
Polyester factory welcomes another promotion
After nearly After two months of steady growth, polyester prices are out of control again this Friday, and polyester manufacturers have started a new round of promotions. Polyester factory promotion range is as high as 200-500 yuan.
The editor has something to say: The downstream weaving market is not sluggish, manufacturers are not motivated enough to buy, polyester manufacturers’ production and sales continue to be sluggish, and it is difficult for production and sales to exceed 100 when prices are occasionally reduced. There is a backlog of inventory. If there is no promotion, it will be a problem. It is difficult for anyone to buy silk.
Market Review
Polyester: In terms of PTA, the PTA market this week is taking turns between rising and falling. PTA spot prices rose to 5,507 yuan/ton at the beginning of the week. However, as U.S. commercial crude oil inventories unexpectedly increased significantly, the rapid spread of the Delta mutant strain weighed on the economy and demand forecasts.�, international oil prices fell sharply. Coupled with the gradual restart of PTA early stage equipment, the PTA market trend fell, with a drop of 4.9%. However, at the opening of the 9th, short covering combined with the fall of the US dollar exchange rate, and the international oil price rebounded. The PTA market fluctuated upward. The current mainstream quotation of PTA is 5,200-5,280 yuan/ton. It is expected that PTA prices will mainly fluctuate in recent days.
In terms of polyester filament, the epidemic situation at home and abroad has been recurring recently, the off-season has not ended, and the confidence of downstream textile companies is obviously insufficient. , a cautious wait-and-see mentality dominates. Transaction volumes in the polyester yarn market were scattered, and only some factories with strong discounts performed well. Due to the sluggish downstream demand, the efficiency of polyester products has weakened recently. Therefore, major manufacturers in the industry have jointly reduced production. Tongkun, Xinfengming, Hengyi and Tiansheng plan to reduce production by 20% starting from next Monday, involving polyester filament production capacity. About 4.5 million tons, recovery time to be determined. It is expected that polyester yarn sales will mostly fall and consolidate next week.
In terms of profit, PX’s loss this week narrowed slightly compared with last week, and its loss space has now shrunk to 88 US dollars/ton. As for PTA, its profit decreased this week, and its profit is currently around 49 yuan/ton. In terms of ethylene glycol, it turned a loss into a profit this week, with a current profit of US$4/ton. In terms of polyester filament, the price of polyester filament was stable and fell this week, but due to the reduction in costs, profits rose and fell; FDY profit rebounded to 63 yuan/ton; POY150D profit fell, and the current profit is 216 yuan/ton; DTY150D profit decreased, currently The profit is 97 yuan/ton.
In terms of operating rate, the average weekly operating rate of PTA this week is concentrated at 67.9%, which is higher than last week The real-time operating rate was 66.4%, and the real-time effective operating rate was 73.4%. In terms of polyester, the average load of polyester this week was concentrated at 90.2%, falling slightly. In terms of weaving, the recent weaving operating rate has dropped to around 72%.
In terms of production and sales, the overall transaction atmosphere of polyester yarn in the market this week was generally average, and the price of polyester yarn was stable but fell. , at the same time, due to the off-season, most downstream people are mainly waiting and watching, with less enthusiasm for purchasing. The overall performance of polyester production and sales is mediocre. Although some manufacturers have reduced prices, the overall production and sales are still only about 30-40%.
In terms of inventory, from the statistical data of China Silk City Network, the current overall inventory of the polyester market Concentrated on 18-28 days; in terms of specific products, POY inventory is around 15-24 days, FDY inventory is around 18-20 days, and DTY inventory is around 21-30 days.
Weaving: It can be seen from the Shengze Index of the Ministry of Commerce that the downstream market is still in the off-season. , the overall transaction atmosphere in the textile market is average, and downstream fabric orders are relatively lacking. The raw material market has become loose this week, and the prices of some polyester products have gradually adjusted back, but the prices of spandex are still rising. The high price of spandex raw materials has led to a significant increase in the production costs of downstream elastic fabric weaving companies. Orders for four-way elastic have begun to decrease slightly. At the same time, it is difficult to increase fabric prices. At present, the weaving operating rate in Shengze area has dropped to about 72%; in addition, with the poor market supply, the overall gray fabric inventory has also begun to rise slightly to about 39.5 days.
Printing and dyeing: The activity of the printing and dyeing market is still not good this week, and the number of gray fabric dyeing has dropped from last week . The quantity of gray cloth entering the warehouse decreased slightly, and the operating rate remained at 68%.
Most dyeing factories are operating at around 70%, a few dyeing factories with lower operating load are only at 50-60%, and a few are operating at less than 50%. As it is still in the traditional textile season, the order situation in dyeing factories has not changed much compared with the previous period. The follow-up of new orders is slightly weak, and some workshop machines are insufficiently started. Coupled with the impact of high temperatures, workers take more leave and there is a shortage of labor, resulting in low operating rates. In terms of products, autumn and winter fabrics such as elastic fabric, nylon and pongee are still the main products, while other fabrics lack highlights.
In terms of delivery time, as the number of dyed gray fabrics decreases, the overall delivery time drops slightly, to about 6 days.
Outlook
Polyester is on sale this week, gathering Ester factories will also begin to reduce production. As the epidemic spreads at home and abroad, the market becomes sluggish. Polyester promotions may drive a wave of shipments, but downstream demand is insufficient and the market is still difficult to pick up…
��Insufficient demand makes it difficult for the market to recover…
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