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SunSirs: China's Polyester Yarn Market is Maintaining Stability and Taking Stock

December 11 2020 09:34:15     SunSirs (Linda)

According to statistics from SunSirs, on December 10, the average spot market price of 32S polyester yarn in Jiangsu, Zhejiang and Shanghai was around 13,375 yuan/ton, which was the same as last week. The downstream market stocks up for the New Year, but the shopping festival orders are gradually completed, the follow-up orders are weak, the start of the loom has dropped, and the inventory of pure polyester yarn enterprises has increased from the previous month.

In the yarn market, raw material prices are still undergoing slight adjustments and remain at a high level recently. The pure polyester yarn market has remained weak, while vortex spinning has maintained stable quotations. Spot sales without orders have also gradually weakened. Many spinning mills, especially small spinning mills, have gradually weakened sales and increased inventories after completing their pre-orders. They are bearish on the market outlook. Imitate Dahua pure polyester yarn to maintain stability. Jiangsu and Zhejiang Vortex Spinning Pure Polyester Yarns are negotiating to sell goods, T30S mainstream price is 11,000 yuan/ton, and the transaction is negotiated. Hebei Dahua yarn T45S mainstream excluding tax is around 9,300-9400 yuan/ton. The downstream market lacks stamina and the trading atmosphere is not performing well. Rigidity is the main factor. In actual negotiations, there will still be some gains. The factories purchase on demand. The yarn mills have low inventory but low profits. The overall production enthusiasm is average. Faced with such a low market today, orders cannot meet production needs. Many factories take into account the reasons of capital and machines and start to accept some orders for processing with supplied materials, so that they only earn processing fees, and can start as many as possible without occupying raw material funds. 

The cost side is good for support. The recent increase in crude oil is good for market production and sales. The strong upstream raw material prices form a strong support for costs. Staple fiber spot production and sales are hot. Some polyester staple fiber manufacturers in Jiangsu and Zhejiang have quotations increased by 50-100 yuan/ton. Driven by the rise in futures, manufacturers that did not increase prices on weekends also increased their quotations by about 100 yuan. The mainstream price is around 5600-5800 yuan/ton, and the real order mainstream negotiation may be around 5550-5650 yuan/ton. The semi-gloss 1.4D mainstream in Fujian area reported 5700-5750. Semi-gloss 1.4D mainstream 5700-5750 delivered to Shandong and Hebei markets. Due to futures adjustments, the spot market wait-and-see to digest the early stage I stock up. In the futures market, staple fiber main futures (2105) rose, about 200 yuan/ton higher than last Thursday. Higher crude oil and a rebound in PTA led to a rebound in polyester staple fiber futures, and a rebound in futures led to a sharp rebound in spot production and sales. However, it is difficult for the spot polyester staple fiber to continue to strengthen due to demand constraints.

The 'Double 11' and 'Double 12' orders in the downstream market entered the traditional off-season after the gradual delivery. The new orders were not good, and the weaving operation rate decreased. Recently, the market orders for conventional varieties are not good, and the weaving factory's grey cloth out of the warehouse is slow, and the machines are mainly conventional varieties. The re-orders of certain types of fabrics are affected by the increase in raw material prices, and the current prices are unbearable for customers, and actual orders are hindered. Towards the end of the year, raw material prices fluctuated, and weaving factories were mostly on the wait-and-see mood, basically not preparing bulk stocks. Orders in the export market are relatively thin, and the number of reversal orders has shrunk slightly. The market demand for conventional varieties began to fade, and there were more and more inquiries for the development of new varieties and new processes of fabrics.

In the early winter of the market, the sales of fabrics in the early winter are insufficient, orders for spring fabrics are relatively limited, the operating rate of weaving companies is partially inadequate, and the output of printing and dyeing companies slightly declines. In the case of reduced orders in the weaving market and insufficient stamina, business analysts believe , Pure polyester yarn ring spinning remains stable, vortex spinning continues to be bearish, and the market may show a partial downward trend.

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