1. Crude oil and futures plunged collectively, and upstream raw materials were in mourning
Since May, polyester raw materials have encountered “extremely cold weather”! International crude oil, the weather vane for polyester raw materials, has plummeted. On the 9th, the price of WTI has dropped to US$45.88/barrel.
(The picture shows Nymex futures trend chart)
As one of the futures commodities, PTA cannot escape the fate of the market decline. Since the big plunge on May 4, PTA futures have continued to fall for five consecutive trading days, and the market price has fallen back to around 4,800 yuan/ton.
(The picture shows the Zhengzhou Commodity Exchange PTA1709 contract trend chart)
PTA, as the upstream raw material of polyester filament, continues to weaken, causing direct cost pressure on polyester filament. Since May, the price of polyester filament has also dropped significantly, with prices of various specifications falling by 300-400 yuan.
2. The fabric market is stable and the market is still stable
The upstream raw material market has been weakening. In addition to the continued decline in polyester filament prices, market production and sales performance has also been mediocre. Has the downstream fabric market also entered the off-season ahead of schedule?
However, after visiting the market, the author heard different voices from the fabric market.
“Has the market entered the off-season recently?”
“No, we still sell as much polyester taffeta as we weave. The 210T specification can be said to be in short supply!”
“It’s already May, why are there still so many orders this year?”
“The market has been relatively stable recently. This is mainly due to the fact that weaving in Zhejiang is environmentally friendly and many customers have moved here.”
“The market for artificial silk has been very good this year. How is your family doing?”
“Not bad! The thin and light ones are better, mainly sold in the domestic market.”
“What percentage of your factory’s machines have been used recently?”
“It’s fully operational. We have orders in hand, so there’s no reason for the machine to stop!”
Although it has entered May, judging from the shipment and production situation, the Shengze fabric market has not yet clearly felt the arrival of the off-season. The market has started relatively smoothly, with prices between 80% and 90%. The mainstream products in the market are mainly concentrated in imitation silk, nylon spinning, imitation memory and other products, and manufacturers have many orders on hand.
According to the survey and monitoring of China Silk City Network, the recent weaving start-up in Jiangsu and Zhejiang regions is around 78.5%, which is 4 percentage points lower than the start-up in April, but the overall start-up is still at a relatively high level. So besides Shengze, how is the market situation in other places in Jiangsu and Zhejiang?
Changshu Area: Recently, the number of orders received in the Changshu warp knitting market has decreased. The products are mainly concentrated on DTY120 and DTY150D products. The market opening rate has dropped from around 70% to between 50% and 60%.
Shaoxing Region: At present, orders for weaving in Shaoxing region are mainly polar fleece and Shu cotton velvet. The supply of conventional varieties exceeds the demand, and the goods are generally sold. Woven products still perform better with imitation silk, and the market opening rate has dropped by 10%, currently between 60% and 70%.
Jiaxing Region: Due to the environmental protection rectification of water-jet looms in Xiuzhou District, the operating rate has dropped to a certain extent. In the Haining area, orders for warp knitting sofas have also decreased to a certain extent, and the start-up situation is relatively stable, slightly above 70%.
The market has always been like a gust of wind, coming quietly and possibly leaving silently. It can be said that the knitting market has weakened significantly recently, while the woven market has been relatively stable. Judging from the current situation, the Shengze market trading atmosphere does not show an off-season atmosphere, and some manufacturers are still fully scheduled for production. Everyone said that the peak season in the first half of this year in the Shengze area was not as hot as expected, but it was very stable. With the arrival of the traditional off-season, time will tell whether the market will be “not weak in the off-season” or “really light”!
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