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[Weaving has reduced production, will polyester still be far behind?]
Release date:[2020/7/8] Read a total of[552]time

Commodity can never be produced. Production can only make it a "product". If you want to make it a "commodity" and generate profits, an important step is to sell it.


However, due to the new crown pneumonia epidemic and some unreasonable operations in the first half of the year, this step has become more difficult for some weaving companies and polyester factories.


Weaving enterprise

Once: The price of polyester yarn was "true fragrance"


In the first half of this year, the price of polyester filament fell sharply, almost to the lowest point in history.


The price of such "scented" polyester yarns has made some weaving companies have a psychology: buy more while the raw materials are cheaper. Anyway, they will always be used. The cloths produced are more conventional, and the epidemic will definitely be in the future. Being controlled, the market will definitely improve, and by then the profit of cloth using cheap raw materials can become very high.


Therefore, until mid-June, even if there were no orders, the operating rate of weaving enterprises was not low, with an average operating rate of more than 70%.


Moreover, not only do weaving companies think so, but traders think so too. I have heard more than once that traders took advantage of the opportunity to hoard grey cloths and raw materials in the first half of the year, and some people even judge that it is historically low prices directly." Stud bottomed out.


Now: cash flow is tight, the warehouse can't pile up


To some extent, this idea is not wrong. Buying low and selling high is also the essence of doing business, but it is often not the case.


The situation in the first half of the year was like that Xiaobian usually went to Taobao and saw a lot of special deals. I thought that I would always use what I could get, and I immediately bought an order and bought it, but after I bought it, I left it at home. , I do not know to wait until the year of the monkey to really come in handy.


Although the grey fabrics produced by weaving enterprises have a wider scope of application, in the short term, they can only be piled up in warehouses as inventory, leading to an increasing inventory of grey fabrics. When the funds are occupied to a certain extent or the warehouses are no longer piled up, there are only two roads left in front of the weaving enterprises-production stoppage or dumping.


Polyester company

Once: Profits picked up, inventories fell, and expansion was at the time


In the first half of 2020, due to the huge fluctuations in international oil prices, the profits of polyester filament yarns have undergone ups and downs. Since weaving companies were in the stage of capacity recovery before April, the production and sales basically remained at 2-4%. After April, with the rebound of international oil prices, the price of polyester yarn rose, and the profit of polyester yarn began to rise again, returning to a pretty good situation.


The short-term downstream large-scale purchase of raw materials and the continuously rising profits of polyester filaments have given polyester manufacturers the urge to continue to release production capacity. Exactly, 2020 is the time for planned polyester capacity to expand again.


In the first half of 2020, the total domestic new polyester production capacity was 2.93 million tons, of which 1.2 million tons were newly put into production for polyester filament, accounting for 41% of the total polyester new production.


New polyester production capacity has been put into production one after another, and this is regarded as the efforts of leading polyester companies to increase market share, but the polyester startup rate is a bit unreasonable.


Now: Inventory continues to rise and promotions are useless


It can be seen that from March to the present, the operating rate of the polyester plant has shown a trend of rising all the way, which seems to be explained only by "seeing the profit and happiness".


And this also led to the polyester factory polyester yarn stocks straight up again.


As soon as the polyester factory saw a higher inventory, it chose to promote it, but this time the weaving company showed an "indifferent" attitude towards it.


Weaving has reduced production, will polyester still be far behind?


The promotion of polyester filament is "not fragrant", and the reason is simple: the stock is increasing, but the demand has not shown much signs of improvement. Many weaving companies can not bear the double pressure of inventory and capital and began to reduce production operations. At present, the Jiangsu and Zhejiang markets are spraying. The operating rate of water looms has dropped to about 60%.


Weaving enterprises have fewer machines, and they have no extra funds. Naturally, there is no desire to buy silk. At this time, it is normal for polyester production and sales to go up. But when the promotional routines are no longer useful, will polyester manufacturers reduce production? let us wait and see.


Haian County Qinfeng Chemical Fiber Co., Ltd. ranks among the high-quality enterprises in the industry with its single-stream professional technical strength, front-end quality inspection system and perfect quality inspection system, specializing in the production of pp staple fiber, polypropylene staple fiberpolyester staple fiber, and functional polypropylene staple fiber Fiberfunctional polyester staple fiber, etc.


If you want to know more product information, please contact: Mr. Qian 13962787918, 13813743991 Website: http://www.glory-fiber.com/


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