On April 12, polyester factories generally started price reduction promotions, with prices as high as 200-450 yuan/ton:
A major polyester manufacturer in Tongxiang has a promotional discount;
The price of polyester yarn from a factory in Jiangsu is reduced by 350-400;
The price of polyester yarn from a factory in Shaoxing is reduced by 200-450
A major mainstream polyester yarn manufacturer in Shengze, Jiangsu has lowered its polyester yarn price;
A major mainstream polyester yarn manufacturer in Xiaoshan has lowered its polyester yarn price;
A major mainstream polyester yarn manufacturer in Zhejiang Province has lowered its price Prices of polyester yarn from major factories dropped
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According to the editor’s understanding, weaving companies have started to ” “Buy, buy, buy”, polyester production and sales exceeded 400% in the morning.
There is a saying in the textile market that polyester filaments are “riding on a rocket” when they rise, and they are “squeezing toothpaste” when they fall. This refers to the fact that the price of polyester filaments has risen so much. It falls quickly but slowly, and this time the price fell so much all at once. What is the reason?
Inventory
Since 3 After the monthly decline in polyester filament production and sales, polyester inventories began to rise again. According to statistics from China Silk City Network, as of April 9, the overall inventory of the polyester market was concentrated at 19-28 days; in terms of specific products, POY inventory was at 9-17 days, and FDY inventory was at around 14-24 days. The DTY inventory is about 16-28 days old. Although this inventory is not as high as the absolute high caused by the epidemic last year, in the long run, it is still relatively high, and destocking has become a top priority in a sense.
Profit terms
Due to polyester When the price of filament fell, it was like “squeezing out toothpaste”. When the cost of raw materials dropped significantly, the profit situation of polyester filament became very optimistic. The profit of POY even exceeded 1,000 yuan/ton in some cases, but Such high profits do not allow weaving companies to pay the bill. In March, except for the last few days of the month, the overall production and sales of polyester yarn were not good. Therefore, polyester yarn can be said to be in a state of “price but no market”.
But from another perspective, high profits on paper mean that polyester factories have sufficient room to adjust prices and make profits.
Strategy of weaving companies
For weaving companies, how much raw materials they purchase is closely related to changes in raw material prices and how many orders they receive. Throughout March, weaving companies generally received less orders than expected, and gray fabric inventories continued to rise. According to data monitoring from China Silk City Network, the average inventory of gray fabrics in weaving enterprises in Jiangsu and Zhejiang markets was about 39 days on April 9.
March is a traditional peak season. Under normal circumstances, gray fabric inventories decline. This year’s situation is obvious. Somewhat bad.
Therefore, when purchasing raw materials, most weaving companies also adopt a buy-and-use strategy. This strategy also leads to the fact that the raw material inventory prepared by the weaving enterprises themselves is not high.
In the case of large sales promotions in polyester factories, weaving companies naturally take advantage of the bargains to “buy, buy, buy.” After all, although this situation was more common last year, it seems to be still the case this year. first.
Will polyester yarn continue to fall?
After this wave of promotions, the question that weaving companies are more concerned about is, will polyester yarn prices continue to fall? Let me briefly analyze it.
The motive of polyester factory promotions is to clear inventory. From the perspective of production and sales performance, the strategy of clearing inventory is very successful, so this motive will no longer exist in a short time. In terms of terminal demand, the weaving and fabric markets were polarized in March. The weaving market was light, but the fabric market represented by dyeing plants was booming. This was mainly because the weaving market was advanced in February. Overdrafted most of it. As time goes by, the overdrawn market will gradually be made up for, and future demand is believed to be back on track.
Therefore, in a short period of time, it will be difficult for polyester factories to promote polyester yarns on such a large scale. Weaving companies that need to replenish their stocks can seize the opportunity. Of course, whether to buy or not should also consider your own business conditions and act within your capabilities. </p
