I originally thought that the polyester raw material market would end quietly at the end of 2017, but at the end of December, the polyester upstream market seemed to have thrown stones into a calm lake, causing ripples.
On December 24, Jiaxing Petrochemical’s 2 million tons PTA unit was shut down. As soon as the news came out, PTA Futures prices rebounded.
On December 26, the Libyan oil pipeline was attacked. International crude oil surged, with WTI approaching the US$60 mark; Brent crude oil exceeded US$65.
Under the hype of crude oil and news, the raw material market is ready to move
Under the sudden favorable conditions of PTA equipment and crude oil, PTA and ethylene glycol stopped falling and rebounded, and the polyester market followed suit.
However, as can be seen from the above table, this round of price increases has not It causes resonance in the downstream. Although the raw materials increase significantly, the downstream reaction is relatively general. First of all, let’s look at prices. The prices of polyester raw materials PTA and ethylene glycol have increased significantly. However, polyester prices have limited follow-up. Polyester manufacturers have also raised prices for some specifications. The market has not seen a sustained general increase. Let’s look at production and sales. Production and sales have always been a very important factor reflecting market activity. Although polyester prices are about to move at the end of the month, the downstream stocking attitude is still relatively cautious. Only on the 27th, the production and sales of some manufacturers exceeded 300%, and the overall production and sales were around 150%. At other times, the downstream stocking enthusiasm was insufficient.
The price of polyester yarn has also increased this time, and the end of the month is here. Why don’t the downstream stocks stock up? ?
“The domestic orders are almost over now, and the factory is basically weaving All the fabrics are in stock. After New Year’s Day, some workers have the idea of going home. It is estimated that workers will begin to return home after mid-January. By then, how many workers will operate as many machines as possible. The most critical thing Yes, raw materials will definitely fall in the future. It is most suitable to buy some and use it at this time. Just wait until the price is almost the same and then stock up.” said the cloth boss of Shengzeyi, which produces pongee.
The author visited the market and learned that many cloth bosses said that although the Chinese New Year was late this year, orders from manufacturers ended early. Regarding this result, some fabric bosses told me that a big reason is that the current fabric market is so weak due to the overdraft of early orders. Although this is the personal opinion of some distribution bosses, it is also the true view of the market from the distribution bosses of the marketing department.
Boss Bu has taken less goods. Although crude oil continues to rise, sudden news frequently appears in the PTA market, and ethylene glycol prices continue to rise. There was a huge jump, but without the active participation of cloth factories, the scene of polyester filament wanting to be shipped and prices increased was ultimately lacking in applause and box office.
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