News Hotspots
Tensions in the Middle East escalated, and Brent Oil and U.S. Oil both rose by more than 2%!
Xinhua News Agency, Baghdad, January 3 (Reporter Bai Ping) The Baghdad International Airport in the Iraqi capital was attacked by three rockets in the early morning of the 3rd, killing at least eight people.
The U.S. Department of Defense announced on December 29, 2019, that the U.S. military carried out air strikes on multiple facilities of the Shiite armed organization “Jab Hezbollah” in Iraq and Syria that day in retaliation. The organization has repeatedly attacked military bases in Iraq housing troops from the U.S.-led international coalition fighting the Islamic State. Hundreds of demonstrators gathered in front of the U.S. Embassy in Iraq on December 31 to protest against U.S. air strikes.
On January 3, in early trading in Asia on Friday, Brent crude oil and New York crude oil both rose. Among them, New York crude oil’s increase further expanded to 4.47%, with a maximum of $63.84/ barrel, setting a new high since September 2019, with Brent oil rising 4.44% to a maximum of $69.16 per barrel. At the same time, spot gold exceeded the $1,540 mark intraday.
Device maintenance
Although some short-fiber plants have restarted this week, many sets of filament and short-fiber plants have been inspected and repaired as scheduled, so the polymer operating load has further dropped. In addition, a new 100,000-ton small polymerization unit in Nantong was put into operation at the end of December.
Tongkun Hengtong’s 400,000-ton polyester filament plant will be shut down for maintenance on December 31 and is expected to restart on January 20;
Anji Huayi’s 200,000 tons of polyester filament will be shut down for maintenance on December 31 and is expected to restart on February 1;
Jinjiang Baihong’s 200,000 tons of polyester filament will be shut down for maintenance on January 1 , is expected to restart on February 1;
Fujian Jinxing’s 200,000 tons of polyester filament will be shut down for maintenance on January 2 and is expected to restart in early February;
Xiaoshan Ruichenghui’s 250,000 tons of polyester filament is scheduled to be shut down for maintenance on January 10 and is expected to restart on February 11;
Wujiang Yingxiang’s 250,000 tons Polyester filament is scheduled to be shut down for maintenance on January 6 and is expected to restart after the Spring Festival;
Taicang Zhenhui’s 200,000 tons of polyester filament is scheduled to be shut down for maintenance in early January and is expected to restart in early February .
Polyester
Crude oil surged, and polyester raw materials were pulled across the board. Lift!
In terms of production and marketing, due to the sudden rise in the macro-geopolitical crisis, European and American crude oil futures prices rose sharply, boosting the purchasing sentiment of downstream weaving companies. Today, polyester filament yarn in Jiangsu and Zhejiang regions The market trading atmosphere has improved significantly. The average production and sales of mainstream manufacturers are at 136%, and the production and sales of some better factories are at 40%, 120%, 300%, 80%, 246%, 280%, etc.
In terms of inventory, from the statistical data of China Silk City Network, the overall inventory of the polyester market is now concentrated In terms of specific products, POY inventory lasts for 3-7 days, FDY inventory lasts around 7-12 days, and DTY inventory lasts around 14-19 days.
Weaving
The winter vacation mode has begun, and the market atmosphere has weakened significantly
After New Year’s Day, the fabric market transactions mostly showed a “small batch” pattern , the overall performance of new orders in the market is average, and many companies say they are not optimistic about receiving orders after the Spring Festival next year. As the Spring Festival approaches, manufacturers mostly perform finishing work, and the market price of gray fabrics has not changed much. In terms of the operating rate, as the Spring Festival holiday approaches, a small number of manufacturers in the market have begun to take holidays, and the market operating rate has declined. The operating rate of water-jet and air-jet looms in Shengze is now about 70%;
LookingspecificallyatthevariousweavingclustersinJiangsuandZhejiang,theoperatingrateofShengzewater-jetloomsisabout70%;Xiaoshaocircularknittingmachineshavedroppedto3-40%;HainingwarpknittingmachinesTheoperatingratedroppedto60%to70%;theoperatingrateinChangshudroppedtoabout30%to40%.Mostcompaniessaidthattheiremployeeshavereturnedhomeearly,andthemarketoperatingratewillcontinuetodecline.
In terms of inventory, as the market transactions come to an end, manufacturers are not selling much goods, and the inventory has increased slightly. Gray fabrics are now available in Shengze area Inventory is around 38 days. Entering mid-December, most manufacturers will begin their holidays and workers will return home. Market sentiment will continue to weaken and will rise in the future.
In terms of profit, the polyester filament market is operating stably this week, and the prices of mainstream manufacturers The center of gravity has stabilized; as of Friday, the quotations of POY 75D/36F mainstream manufacturers were around 7200-7300 yuan/ton, while the quotations of FDY 50D/24F products rose slightly to around 9100 yuan/ton; in terms of gray fabrics, near the end of the year, market transactions Weakened, prices tended to be cautious, and market profits changed little.
Note: Due to differences in the production processes of each factory, this The profits involved in the table only deduct the cost of raw materials, and do not involve labor, weaving and other costs.
We believe that emergencies will be beneficial to the short-term strength of PTA, but at present, polyester Factories have successively announced maintenance and production reduction plans before and after the Spring Festival. The demand side has weakened overall, and the market has entered the accumulation stage. The terminal textile market has gradually entered the year-end closing stage, and raw materials are being purchased cautiously. Therefore, negative factors in the market still exist, and polyester led by PTA The product continues to rebound but still lacks motivation!
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