On January 26, the quotations from polyester factories were stable, but the actual transaction prices dropped by 300-400 yuan. Originally, with the holiday in the textile market, polyester factories should also be taking a break. However, most polyester factories in Jiangsu and Zhejiang still choose to “break bones” in promotion at this time.
This is a very rare thing, and don’t forget, the cost side is now taking off due to geopolitical factors! But when faced with the little tricks played by polyester factories, textile bosses really fall for it! The overall polyester production and sales on that day were 162%!
Why is the polyester factory promoting at this time?
First of all, the downstream market has been in a relatively tepid situation throughout last year. Coupled with the previous production restrictions, the textile market’s demand for raw materials has decreased. Therefore, the production and sales of polyester factories have decreased, and the inventory barrier has been high. In order to increase production, polyester factories have Production and sales have tried their best to increase sales and promotions, and polyester prices have been rising frequently in recent times. Although the textile market has slowed down and prices have stabilized as the textile market has entered the holidays, the overall production and sales of polyester have been on January 25. Unable to reach the 10% threshold, only a pitiful 7.7%.
From the picture, we can see that production and sales have been in a relatively sluggish state since around January 5. However, due to the long-term increase, after the focus of polyester factory negotiations was reduced on January 19, production and sales surged in one day. Therefore, it is judged that promotion can still play a certain role at this time.
Secondly, the recent data on polyester yarn profits are very beautiful, and the overall situation is in a strong state. Based on the raw material prices on January 25, the profit of 150D FDY was 308 yuan/ton, the profit of 150D POY was 508 yuan/ton, and the profit of 105D DTY was 508 yuan/ton. The profit is 330 yuan/ton. Although it is not as good as the previous profit of over 1,000 yuan, FDY has increased by 512 yuan/ton year-on-year! This means that the polyester factory has enough profit margins to promote boldly!
Of course, in order to avoid the unreasonable high level of polyester inventory during the holidays in the textile market, polyester factories not only used a small promotion trick, but also started routine maintenance at the end of the year. It is reported that there are 4.38 million tons of polyester. The equipment will undergo maintenance, and most of it will start before the year. The polyester filament load is currently around 80%. However, due to the overlap between maintenance and restart, the price guarantee effect in the later period will not be very significant!
Will the polyester factory still have promotions after the holidays?
The promotion of polyester factories still depends on their own supply and demand relationship. After the downstream market picks up, the demand for polyester yarn will be high, and the price will not come down. If the market conditions are not ideal, starting from November 2021 will be used as an example. , with the end of the “Silver Ten”, the market has plummeted, and polyester prices have also started a weekly sales model. This model will last until the end of December when overseas orders are concentrated. Therefore, the question of whether polyester factories will promote sales ultimately depends on the market. The market is good or bad, but not long after the start of the new year, the traditional peak season of “gold, three, silver and four” has arrived, so it seems that it is difficult to reduce prices.
Of course, it can be said that there are very few cases where polyester factories are still conducting centralized promotions when the textile market enters the Chinese New Year state. However, as we enter the post-epidemic era, the textile market has undergone a new reshuffle, and this situation may not be certain in the future. This situation will occur more frequently, so if this situation occurs again, a capable boss might as well seize the opportunity. After all, there are not many opportunities for this kind of “picking up wool”!
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