After the market closed on March 1, polyester filament production and sales recovered, with an average production and sales rate of 183.8%, and the highest production and sales rate was 100%-300%. The high production and sales of polyester yarn have not been seen for a long time. The last time the production and sales exceeded 100 was in mid-January last year, it has been a month and a half now.
Polyester finally ushered in hot production and sales
After the Spring Festival holiday, the price of polyester filament increased unexpectedly, and the price increased every day. Subsequently, there were small increases intermittently. However, downstream weaving companies have not yet replenished their inventories in large quantities. As a result, the average daily production and sales of polyester filament was only 45.5% throughout February. As can be seen from the above figure, polyester filament production and sales will continue to be flat after the new year. March 1 is the first wave of concentrated sales after the holiday.
On the same day, polyester factories took into account the current different financial and inventory pressures on enterprises, and polyester filament factories saw mixed prices. Some prices were discounted by 50-100 yuan/ton, and some prices increased by 100-200 yuan/ton. As a result, the polyester filament inquiry atmosphere has warmed up, and downstream weaving companies have made large-scale replenishment of their positions.
Weaving purchasing atmosphere is weak
Last year, polyester factories held polyester sales at the end of the month, which was also a regular replenishment day for weaving factories. But on the last day of February, there was no sale on polyester. If the promotion time is pushed to early March, then for downstream manufacturers, No. 1 is just a routine replenishment, and there is nothing special about it. On the other hand, the weaving market “cooled down” in late February, and the demand performance was lower than expected. Most market participants were cautious and waited, and the market purchasing atmosphere was poor. Entering March, the atmosphere at the raw material end is warmer, and the traditional “Golden Three” season is approaching. Supported by the improvement in raw material costs and market expectations, downstream weaving rigidity has been concentrated to make up for it.
The speed and quantity of raw materials purchased by weaving companies are closely related to the orders received. Although the weaving market is booming after the beginning of the new year, most of these orders are placed during the year, and most specifications have large inventories, which are enough to meet the market demand. Subsequently, new orders were not placed smoothly, production demand was not high, and naturally the demand for raw materials also weakened. At the same time, as the market becomes uncertain after the Spring Festival, Mr. Bu adopts a cautious wait-and-see mentality and his purchasing desire decreases.
Downstream orders are generally received
A common pattern among weaving companies in previous years was to accumulate inventory during the off-season, and then sell them together during the peak season. There is a big gap in the number of orders during the off-peak and peak seasons. But this year’s situation is that the orders received by weaving companies since February do not seem to have increased significantly. Looking downstream, the overall elastic opening rate increased rapidly at around 70-80%, and the weaving operating rate was mostly 50-60%, down 6.3% year-on-year. Although the operating rate of downstream weaving has increased, the performance of new orders is mediocre, profits are average, and procurement is more cautious.
Compared with the price of raw materials, what has a greater impact on the price of gray fabrics is the poor order-taking situation of weaving enterprises. For example, when the market weakened in late February, weaving companies that had originally seen prices increase for gray fabrics began to sell goods through promotions, almost reducing the portion that had been raised after the year back to even lower than before. According to statistics from Silkdu.com, gray fabric profits fell by 0.01-0.02 yuan/meter month-on-month in the last week of February. Although judging from the data, manufacturers’ profits are quite considerable, this data is based on the average market price. For those companies that sell goods below the market, the profits are evident.
On March 2, the polyester factory immediately issued a notice to increase prices by 50-100 yuan/ton. Due to intensive promotions and replenishment on the previous day, production and sales will inevitably fall sharply on the second day. At the same time, prices will rise, which will further confirm the deserted production and sales. The main reason supporting the increased production and sales of polyester filament yarns is the favorable cost-side, but this favorable factor has insufficient stamina. At present, the weaving gray fabric market is running smoothly, the production enthusiasm of weaving enterprises is average, the startup rate of looms is difficult to increase, the speed of raw material consumption is weak, and the next centralized replenishment may take time.
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