There are different reasons for the rise

At present, the textile market is in the traditional off-season, and the market demand has declined periodically compared with March and April. The polyester factory chose to raise raw materials at this time, and textile workers speculated on the reasons for the price increase, but mostly just one person's words, which were not confirmed.

Among the many speculations in the market, there are also some:

First of all, this round of polyester filament price increase is initiated by major polyester factories, and the price increase also includes production reduction measures. At the beginning of the price increase, small factories also implemented promotional shipments in order to control inventory. It was not until inventory pressures eased that prices began to rise.

Second, the polyester factory price attitude is very firm. Although in the process of this round of raw material price increases, the resistance of weaving mills is larger, but the overall production and sales of polyester are not high. In addition to June 18 production and sales close to 200%, the rest of the time production and sales are maintained at a low level of 30-50%, some production and sales are still supported by large-scale sales of small factories. However, even so, large factories continue to raise the price of polyester.

The last off-season price hike was 18 years ago

The last round of polyester off-season price increases was in 2018, but the situation was very different then.

The year 2017 is the new and old node of the upgrading of the traditional weaving cluster in the southeast coast and the growth of the surrounding weaving capacity. Old production capacity is gradually phased out, while new production capacity has not yet emerged, resulting in a short-term mismatch between market supply and demand. This has led to a rare scene in the market in the first half of 2018 - a large number of traditional fabrics are frantically snapped up, and prices are rising. Weaving enterprises have cleared the inventory accumulated over the years and have abundant cash flow in their hands. PTA exceeded 8000 points, polyester yarn exceeded 10,000 yuan, and finally increased raw materials and increased production and sales.

In 2024, the cash flow of weaving enterprises in the market will not be as abundant as in 2018. But like 2018, 2024 is also a year of substantial growth in weaving capacity. The author learned that in the first quarter of this year, many textile machinery companies' orders have exceeded the highest level in history, and some orders take three months to complete. A large number of looms expanded the production capacity, and the market naturally had a demand for raw materials. However, at present, many weaving enterprises take the mode of small profits and quick sales of conventional fabrics, so they are more resistant to rising raw material prices.

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