When grey cloth is lined up in dyeing factories and large orders are frequently received for weaving, the “lower price” of polyester filament may be gone forever

Polyester Fabric Factory

As the textile market in July and August into the off-season, textile market demand further contraction, several heavy under the common attack, polyester prices are falling, the price at this stage has been close to the lowest point in April.If coupled with a big discount measures, even if the capital chain has been very tight weaving enterprises, also could not help but say “really sweet”.

Polyester Fabric Price
Polyester Fabric Price Chart

Polyester price rebound space, depending on the performance of the downstream weaving market

After June this year, as polyester inventory went straight up, the profits of polyester filament products also went straight down, and after July, it completely turned into a deficit.During this period, while PTA and MEG prices did not change dramatically, polyester profits fluctuated by several hundred yuan with their own price changes, but on the whole, the situation of loss was not effectively improved.

If according to the experience of previous years and the current situation of inventory, raw materials, the price of polyester in the future seems not to be optimistic, but there is a point can not be ignored.This year’s end market is the worst in recent years due to the COVID-19 pandemic, but polyester filament prices have also fallen to historic lows.Take FDY 150D as an example. In previous years, 7000 yuan/ton has been a rare low price, and the most expensive price was 12,000 yuan/ton, which was still in short supply. However, on August 31 this year, the price was 5,600 yuan/ton.

We can say, as long as the market a little stimulation, polyester price rebound space or very large, and this is mainly to see the performance of the downstream weaving market.Polyester factories continue to lose money, they do not want to go up, but first because polyester leading enterprises do not have much pressure on capital, and second because the cash flow of weaving enterprises is too tight, price increases are likely to become the “straw that breaks the camel’s back.”Therefore, for several months, polyester factory price attempts have failed several times, downstream weaving enterprises do not buy, but with the passage of time, this situation is quietly changing.

Polyester Fabric Net
Polyester Fabric Net Chart

Weaving off-season situation is changing, boost gold nine market open

Since the end of August, the goods on the market have begun to move.September October is the traditional peak season of textile industry, there has been a “gold nine silver ten”, this is mainly a autumn and winter fabric stocking cycle.And this year, the cycle seems to have advanced the trend.

In late August, I saw in the circle of friends that many textile workers have been busy at this stage.Xu, the manager of a large spot fabric trading company, said that the number of people coming to place orders these days is obviously more, the most day to ship more than 1 million meters, mainly finished fabrics, busy until the early morning of the next day, this kind of situation only occurs in the previous peak season.

As the main force of autumn and winter fabrics in previous years, the performance of imitation memory is also commendable. “Most of the recent orders are foreign trade orders, and the market is gradually starting”.Do imitation memory fabric zhang zong said.Another imitative memory factory also said recently received 130,000 meters of foreign trade orders.

At present, the purchasing mode of winter fabrics has been started in the market. In addition, the price of grey fabrics is at the low level of previous years. After the promotion of raw materials, the signal of building bottom rebound is released, which promotes the opening of this wave of market.

“We had more than 1.2 million meters of grey cloth in stock, and we have lost more than 200,000 meters this week. Although we still have about a million meters of stock in the factory, business is certainly better than before.””Says the head of a textile factory that owns more than 60 water-jet looms.”Our recent orders for Chunya textile have also improved. The shipment is better than that in the first half of the year. We have shipment every day, but now the pressure of inventory is still high, but at least the inventory is not rising.”Said the owner of another industrial and trade textile factory that produces Chunya textiles.

Dyeing factory, the business has also picked up, some varieties like elastic fabrics, such as all sides, T400, T800 goods are better, there is a pressure card queuing phenomenon, which is very rare this year.

Polyester Fabric Factory

Textile enterprises in advance of the best time to prepare goods, the future may not have so cheap polyester!

Now some fabrics flow smoothly, it is not so much that the market improved, but more that the expected demand return, downstream stock is full.As news of the vaccine’s success emerged and parts of the foreign trade market began to recover, people began to turn optimistic about the future.Cheap raw materials, dyeing cost price, but also now become the best opportunity for textile enterprises to prepare goods in advance.

And from the experience of previous years, September October is the peak season of textile market, but not the peak season of polyester raw materials.This year, under the impact of the epidemic, polyester filament profit has been greatly compressed, inventory has reached a record high, Boss Bu also has some doubts about buying large quantities of raw materials.

But on the other hand, under the pressure of a lot of bad, polyester filament price has reached the historical low, now out of bad, as long as there is a little good, polyester will rise.Therefore xiaobian judge, polyester prices will indeed rebound after September, but under the pressure of high inventories, the rebound may not be too large.


Business Director at Shanghai Fumao Clothing Co.,LTD

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