Polyester Filament Production And Sales Dropped To 10% Polyester Enterprises Are Facing Reservoir Pressure.

After the carnival at the end of last month, polyester manufacturers had no time to steal music. With the purchase of the "three day tour", the production and sales of polyester were plunged.

Recently, polyester production and sales fell back to below 50% at a time, and there were only 10% manufacturers.

The mystery of production and marketing of polyester factories: Cheng also weaving and weaving!

In the final analysis, the production and sale of polyester products is based on the demand matching degree of downstream weaving factories.

From the end of last month's procurement boom, we can see clues. Because raw material prices are mostly slow down, the weaving factories are generally cautious about raw material purchase, low enthusiasm for stock preparation, and no stockpiling plan. Near the end of the month, raw material inventory of weaving factories is at a low level, which belongs to the period of rigid demand procurement for weaving factories.

In addition, because of the low price of polyester in the year, the price of raw materials has suddenly risen. Driven by the mentality of buying or selling, the weaving factories will supplement some raw materials more or less, thus triggering a wave of low purchasing enthusiasm.

According to the market situation, the raw material inventory of weaving factories is relatively low at the end of the month, falling to an average of about 7-10 days, down by nearly 10 days. According to the usual practice, the general weaving factories will store up 10-15 days' raw material stock for turnover.

As a general manager of Ho Mao textile company, as a conventional fabric manufacturer, such as spring Asia spinning and so on, the price of grey fabric has not risen up, or even dropped slightly, in the near term, because of the influence of sales. Therefore, the procurement of raw materials is mostly on demand.

This time, at the end of the month, we need to enter a round of raw materials. We also feel that the price of raw materials is relatively low recently, and we have purchased some raw materials with fixed demand. Basically, the stock in the factory is about 45-60 days.

However, when the raw material inventory was purchased for half a month, the raw material inventory of weaving enterprises returned from low to normal, and the phenomenon of "intestinal obstruction" in the whole industry chain was not alleviated.

From the perspective of weaving inventory, this year's terminal inventory is not comparable with that of last year. Last year, the total stock was less than 25 days. This year, near the 40 day, the stock level has returned to the level of previous years. From a seasonal point of view, the terminal has been in the off-season in 6-8 months, and its performance has been increasing inventory, decreasing volume and maintaining low load.

"Due to the escalation of trade frictions between China and the United States, the overall sales in the near term are not as good as expected. In the past trade wars, terminal customers would place orders in advance, but before the Levy of tariffs, they did not drive downstream merchants to place orders, and we had a strong wait-and-see mentality.

We mainly focus on foreign trade, and the main marketing goes to Europe and America. "The chief executive of a major foreign textile company in Shengze is worried about it." so this year, the raw material operation is to meet the needs of rigid demand.

On the one hand, due to the lack of our own orders, we are more cautious in our operation. On the other hand, we are not optimistic about the raw materials in the market, because the raw material market without terminal demand is hard to rise, and the stock of raw materials is too large and the risk coefficient will increase.

Wu, general manager of Nantong JE Chuang Textile Co., Ltd. also said that the market is not very ideal, and the raw materials do not dare to enter too much.

Je textile is mainly sales of grey fabrics, mainly the production of conventional twatches, elastic satin and other products. In the near future, it should be the hot season for the production of simulated silk products, but now the market is also relatively popular with 50*75, and the other products have more stock than the earlier ones, which is also an increase in the financial pressure of weaving factories.

Coupled with the summer's traditional off-season is approaching, weaving manufacturers will not take up a lot of liquidity to purchase raw materials, are required to purchase goods, to ensure that the balance of production and marketing can be.

In addition, the clothing sales situation is not good. In April, the retail sales of clothing, shoes and knitted knitted fabrics increased by -1.1% year-on-year, indicating that the terminal orders deteriorated.

Vigilance: replenishment is not the end of the performance of a good sign of recovery! Polyester enterprises will still face the pressure of storehouse.

Judging from this year's weaving market situation, after the first quarter of the United States to grab exports, the domestic golden three silver four traditional small peak season has not arrived.

Terminal orders showed signs of reduction in April, weaving began to decline in early April, and the performance in Shaoxing and Haining in Xiaoshan was more obvious.

At present, the operation rate of Xiao Shaoxing circular machine is only around 50-60%, and Haining warp knitting starts near 70%, which is lower than the previous level.

The situation will be more severe in June, and the poor order will result in a large accumulation of finished goods inventory. There is no willingness to receive goods, resulting in accumulation of stock in polyester factories.

At the same time, the replenishment at the end of last month is not a sign that the terminal is showing signs of recovery, but a short speculative replenishment due to its low inventory, late invoice, and the difficulty of further price reduction of polyester.

But it relieves the pressure of polyester plant's high inventory and gives the polyester plant reasonable space for production.

On the whole, the terminal is in the off-season, probably at the rate of digestion, and now it is mainly stocking. We can not see the continuous procurement of polyester raw materials.

On the other hand, based on polyester industry chain prices also showed signs of decline.

The first thing to bear in mind is the international oil price. The crude oil market has slumped recently, and the oil price has dropped by nearly 5% from its intraday high, reaching a new closing low of two months.

Market participants generally believe that the continuous fermentation of market pessimism in recent days is the key reason for the weakening of prices.

So later polyester enterprises will still face the pressure of storehouse.

(source: China silk net, XinDa futures)