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Supply and demand are tight, and the right to speak is back
Although the current price of some manufacturers of polyester filament has been loosened, the overall production capacity of polyester factories at this stage is more limited, and some polyester factories are only short-term promotional shipments, and the raw material prices of several polyester factories are still strong.
At the beginning of this round of polyester filament price increases in late May, it was initiated by several polyester factories, and they issued a price increase notice, supplemented by certain production reduction measures, which pulled the polyester price. In the first few days, the price of raw materials is not consistent, at the same time as the price of polyester in the big factory, some smaller polyester factories are in the promotion of shipments, until the inventory returns to the low level, only to follow the price increase with the big factory. Therefore, when the inventory problem strikes again, it is understandable to choose to reduce the price to the warehouse, in order to calculate the profit of the polyester that has been repaired at present, even if there is a small decline in price, the polyester factory is still profitable.
In contrast, polyester manufacturers in addition to the pursuit of profits, to regain the right to speak of price is also a top priority. In the past three years, due to the rapid expansion of polyester production capacity, and the frequent occurrence of global black swan events triggered demand fluctuations, polyester filament prices are not booming, and promotion has become the norm. However, by 2024, the current round of growth cycle of polyester filament production capacity has basically ended, and weaving production capacity is still in a period of rapid growth, and the supply and demand of filament are tight, returning to the business cycle.
The inventory rises, the off-season game increases
At present, the market is in the off-season, the market demand is declining, and the upstream and downstream supply and demand situation is reversed. Only from the perspective of supply and demand, the seller's market is changing to the buyer's market, and the game between the upstream and downstream of the market and the price of raw materials is intensified again.
For weaving enterprises, when raw materials rose in price before, because of the high strength of the market, the price increase of most grey cloth was difficult to keep up with raw materials, and the profits of weaving enterprises were reduced. Therefore, once the price of raw materials has fallen, it can restore the profits of weaving enterprises to a certain extent. But on the other hand, buying up does not buy down is the common psychology of the downstream purchase of raw materials, once the price of raw materials is loose, it will increase the wait-and-see mentality of weaving enterprises.
For the polyester factory, profit and inventory is important, but the market's confidence in raw material prices is more important, once the polyester price continues to fall, so that the downstream there is a general price reduction expectations, affecting the mentality of weaving enterprises, the subsequent production and operation may have a long-term adverse impact.
The game between the upstream and downstream in capacity, profit, inventory and the right to speak may be the main theme of the market before the arrival of "gold nine silver ten".
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