Recently, for textile people, the big news should be the production reduction and promotion of polyester enterprises. 13 polyester factories announced their production cut plans, involving production capacity of nearly 3 million tons, which caused an uproar in the market.

At the same time as the announcement of the production reduction plan, the polyester factory also launched a super-strong promotional method, and some polyester factories even reached 500 yuan per ton, which can be said to be unprecedented.

A polyester company driven by inventory and profits

Such a large-scale production cut and such a generous promotion are ultimately because the inventory is too high.

According to estimates, the current loss of POY exceeds 200 yuan/ton, and the loss of FDY exceeds 350 yuan/ton. The profit level of DTY is relatively stable, with a surplus of 100 yuan/ton.

The output reduction is not strong, there is no continuous purchase order for the polyester factory promotion, and the market is worried about the possibility of a large-scale production reduction in the future

However, even though production reduction and promotion are still difficult to achieve, the substantial improvement in production and sales in the first half of the year is still difficult. The incident only led to the recovery of the polyester filament market in Jiangsu and Zhejiang on July 8. The average production and sales of major mainstream manufacturers are 130%-150%. Although the polyester production and sales have been greatly improved compared with the previous period, it is still difficult to return to the previous grand occasion.

Why is the promotional polyester filament "not fragrant"? The reason is also very simple: inventory is increasing, but there is no sign of improvement in demand. Many weaving companies can not bear the double pressure of inventory and capital and began to reduce production operations. At present, the startup rate of water jet looms in the Jiangsu and Zhejiang markets has dropped to about 60% .

Weaving enterprises have fewer machines, and they have no extra funds. Naturally, there is no desire to buy silk. At this time, it is normal for polyester production and sales to go up. For polyester filament yarns, weaving manufacturers have entered the traditional off-season. This year is a special period. The off-season is even lighter. Currently, the inventory of grey fabrics has risen to about 44 days. Most weaving manufacturers indicate that they have plans to reduce production in the later period. With further reduction, the demand for raw polyester yarn will naturally decrease. At the same time, the polyester factory inventory has risen to about 34 days, and is already in a state of accumulated inventory, coupled with weakened demand, the price of polyester yarn is difficult to stabilize.

On the other hand, Cao Qing, a senior analyst at BOC International Futures Nenghua, believes that the current rate of production cuts by polyester companies is not large. In addition to the 13 planned production cuts in July, the total production capacity of polyester enterprises that have been accumulatively repaired and reduced has been 2.937 million tons per year. Except for routine maintenance, the planned production capacity is reduced by 1.544 million tons per year.

Judging from the currently announced plan, due to the relatively high inventory pressure of filaments, the production reduction is mainly concentrated in the filament link. Since July, POY and FDY have shown a loss.

Speculation is also one of the reasons for the current state. In April, crude oil prices bottomed out. The bottom-cut mentality in the industry caused polyester to start high. Polyester factories and weaving factories have accumulated some inventory. At present, crude oil prices are flat, speculative demand is reduced, and polyester factory inventories have increased significantly.

No one wants to be a "connected player"! Limit production on polyester raw materials

As the upstream of polyester, the production limit news can be described as "adding a bit of frost" to PTA and ethylene glycol.

It is not difficult to see from the trend of the spot and futures market of polyester upstream PTA and ethylene glycol on Friday. The mentality of the entire industry chain is relatively pessimistic and difficult to reverse in the short term.

Entering 2020, the PTA market has opened a downward channel. Especially under the influence of the global pandemic pneumonia epidemic and the suspension of production and production in various countries, crude oil prices have fallen steeply, and PTA has continued to fall due to its drag. In addition, due to the epidemic situation, domestic transportation is restricted, and demand has not started. Accumulate, turn on the plunge mode and set new lows repeatedly.

In late April, PTA refreshed its historical low price. Afterwards, with the gradual improvement of the epidemic situation, crude oil prices rebounded, and PTA also began to rebound slightly. However, due to the weak supply and demand fundamentals, the upward momentum is insufficient and the rebound rate is limited.

Huaian Jiatai New Fiber Co., Ltd. is a large-scale polypropylene enterprise integrating R&D, production and sales of polypropylene yarn, polypropylene high-strength yarn, polypropylene industrial yarn, high-strength polypropylene yarn and polypropylene twisted yarn. If necessary, you can log on to Huai'an Jiatai Polypropylene Twisted Silk Official Website.

If you want to know more product information, please contact: Manager Zeng 189 1207 299 Website: http://www.hajtxw.com/