The war in Syria has started in recent days, which can be said to have affected the nerves of the entire market. As the situation in the Middle East continues to escalate, the crude oil market seems to be rising rapidly; of course, this has also had a greater impact on the downstream polyester market, especially the polyester filament market, which has always been sensitive. Stimulated by a series of factors, prices have The center of gravity continues to rise, production and sales explode, and dominance returns.
Price: up, Rise, rise!
Since mid-March, stimulated by the convening of polyester filament supply-side seminars and favorable production and sales, the polyester filament market has started to rise; Boosted by favorable factors such as the subsequent rise in international oil prices and the daily limit of ethylene glycol, the polyester market has been steadily rising, and the price center has also risen.
Especially in mid-to-early April, perhaps driven by the continued strength of international oil prices, the polyester filament market has seen a more obvious rise, with general increases from time to time. It is reported that Some chemical fiber manufacturers even raised their prices three times in a row in one day. Whether it is FDY, POY or DTY products, there has been an increase of 500-600 yuan/ton in this month, some of which are slightly higher or lower.
Production and sales: rising, rising, rising!
With the steady increase in the price of polyester filament market, the mainstream production and sales performance of the market is also relatively hot. Downstream weaving manufacturers and traders have made purchases one after another, perhaps due to certain rigid demand factors, or perhaps due to the mentality of buying up rather than buying down. Since mid-March, the mainstream production and sales in the market have occasionally exceeded 100 prices, changing the previous decline. .
Especially in the past few days in mid-to-early April, the average market production and sales were around 120%, and some manufacturers’ production and sales could reach 200% and 300% for several days; 16 The average daily market production and sales are heating up again, with mainstream production and sales exceeding 200%, and some POY manufacturers’ production and sales reaching 380% and 400%. It is even said that some FDY manufacturers are sold out and have no inventory.
Inventory: Down, Down, Down!
Low inventory has always been the basis for chemical fiber manufacturers to increase prices. However, after experiencing inventory backlogs such as the Spring Festival, chemical fiber manufacturers are plagued by inventory pressure. Until around mid-March, boosted by the production and sales of the polyester filament market, the pressure on polyester inventory eased significantly and gradually declined.
After nearly a month of downstream stocking and favorable production and sales, the inventory of chemical fiber manufacturers has plummeted and is already at a low level. According to statistics from China Silk City Network, the overall inventory of the polyester market has dropped to around 4-15 days so far; POY inventory has been reduced to 3-8 days, FDY inventory has dropped to around 3-7 days, and DTY inventory has been around 14 days -About 22 days.
Profit: increase, increase, increase!
Profit is naturally the most real and urgent concern of chemical fiber manufacturers. During the Spring Festival, in addition to the trouble caused by the increase in inventory, the biggest headache for chemical fiber manufacturers must be the polyester filament products that are in a loss-making situation; the price fluctuations of upstream polyester raw materials have a real impact on the cost of polyester filament. It was not until March that chemical fiber manufacturers were able to gradually recover the profit margins lost in the early stage due to the rebound in prices of polyester filament products and the shock adjustment of upstream polyester raw materials.
In the past month, the profit margin of various polyester filament products has gradually increased; according to data from China Silk City Network, as of the 16th, the profit margin of FDY150D has increased to 578 yuan/ tons, POY150D profit rose to 508 yuan/ton, and DTY150D product profit rose to 503 yuan/ton. Although there are inevitably differences in cost accounting due to differences in process control and raw material purchase prices among various manufacturers; overall, the profitability of chemical fiber manufacturers has returned to the relatively high profit level around November last year.