There is still January left in 2020. For the textile industry, the market has begun to ferment again in recent times! In recent times, some weaving manufacturers have begun to call for holidays in view of increasing inventories and continued losses, and polyester factories have also lost no time in announcing their new year’s production reduction plans for polyester factories.
Displayed according to the maintenance plan of the current device , polyester maintenance has increased since this week, especially from late December to January, polyester equipment has a large-scale maintenance plan. The editor found through the maintenance time points of some filament factories in recent years that polyester factories usually started maintenance after the end of December in previous years. Compared with the same period in previous years, it is really rare for the maintenance plan to be exposed so early this year!
As the polyester market is declining, the polyester factory maintenance node has not yet arrived. Why should the polyester factory release the news of equipment maintenance in advance? What are their plans?
1. Due to the performance of raw materials and terminals, the polyester load has gradually weakened in the early stage and has been delayed
Based on the current market situation, it is indeed necessary for polyester factories to reduce production; in recent months, the production and sales of polyester factories have remained at a low level of less than 100 for a long time, which has led to a trend of higher inventories in polyester factories. However, by the end of the year, the inventory pressure of polyester factories is equivalent to financial pressure, which will inevitably require further destocking to recover funds. However, in the near future, among polyester products, in addition to polyester chips and polyester filament FDY In addition to being in a loss-making state, polyester bottle chips, polyester filament POY, and polyester filament DTY are all in profit.
This is mainly because the price of PTA fell sharply in the early period. For polyester, the production efficiency has improved due to the decline in raw material costs. Therefore, the original market expectation of a gradual weakening of polyester load starting from late October did not occur. The original expectation of increased polyester maintenance in late October was postponed due to the performance of raw materials and terminals. Although crude oil rebounded in the early stage and shipments of various products were good, downstream demand was limited and production and sales fell rapidly.
Blind promotion to destock is no longer feasible, so polyester factories hope to reduce production and increase prices to promote the sales of polyester filament, thereby achieving the purpose of destocking.
2. The decrease in the load of the loom has led to an increase in the willingness to decrease the load of the polyester device
Terminal gray fabric inventory has accumulated slightly, the load of looms has begun to weaken in December or will gradually weaken, and the upward negative feedback of polyester is expected to gradually begin. As of November 25, the inventory of gray fabrics in Shengze area reached 38.5 days, which means that terminals have ended the slow destocking and turned to a slight accumulation. Generally speaking, terminals are currently rushing to process overseas Christmas orders, but with the gradual reduction of orders starting in December, the corresponding loom load in Jiangsu and Zhejiang is expected to begin to decline. The decrease in loom load will lead to an increase in the willingness to decrease the load of polyester equipment.
Can polyester factory inspections stimulate a wave of weaving stockings?
The editor went back and read the contents of the entire plan, and what I understood is nothing more than a little meaning: the plan to reduce production and suspension is out, and the market will definitely not fall in the future. So stock up before it’s too late!
For weaving enterprises, raw material prices account for the vast majority of product costs and are one of the most important factors affecting gray fabric prices and profits. Therefore, textile workers will be extremely sensitive to changes in raw material prices. In the weaving market, it is also customary to stockpile a batch of raw materials before the Chinese New Year holiday every year to prepare for post-holiday production.
But this year’s situation may be somewhat different from the previous two years. At present, there is not a very good environment in the upstream and downstream sectors. This year, terminal demand is insufficient, prices of raw materials and gray fabrics have been falling, the inventory of conventional products in the weaving market has “skyrocketed”, and more importantly, the capital chain is very tight.
This situation has caused the market to lose confidence in polyester raw materials. The common raw material purchasing strategy of weaving companies today is to buy and use as they go, and the purchasing cycle is basically compressed to one week. Within this, I am afraid that the price of the raw materials will drop again after I buy them. Coupled with the future wave of new upstream raw material equipment being put into production, the market is further bearish on the price of polyester raw materials. It can be said that the impact of polyester factory overhauls in previous years on stimulating weaving stocking surges has become weaker and weaker, and textile companies stocking up on raw materials before the holidays has gradually become an uncertain event.
In addition, there are too many variables in this production reduction, so the polyester factory released the news in advance, which may be a bit of a shock to the market. In the future, it will depend on the polyester factory’s equipment reduction. The specific implementation of the suspension of production. </p
