Factories Are Straddling, Poly Yarn’s Supply-Demand Is Inadequate

Monday, Commerce Department China-Shengze Silk Chemical Index-the overall indexes raised 0.03 compared with last Monday and closed at 98.41. Among these, the chemical fiber index rose 0.04 and closed at 97.02; the chemical fiber index closed at 101.37, dropped 0.03.

The following graphic shows the chemical products index

Today, the fabrics selling in Shengze Market is steadily increasing. Influenced by the increasing cost, some spring-summer clothing and home textiles fabrics raised the selling price ranging from 0.2-0.4 Yuan/M. If analyze the growing marketing these days, the recently increasing orders, and the production cycle’s going with a swing will both be the causes. At present, the shipment amount is growing steadily day by day. It can be predicted that the sales will still increased even after March. For the products selling side, the sales of routine products like 290T and 310T semi-light Taffeta is continuously increasing. As for the price, the 290T semi-light Taffeta is 2.5 Yuan/M with invoice and 310T semi-light Taffeta is 2.75 Yuan/M. While the cotton products like 100D*16S/130*45 Poly/Cotton Plain fabric, 32S*100D/124*86 Cotton/Nylon Plain fabric and 210T Poly/Cotton fabric all have good sales. Understood from the market merchants, the present demand for the cotton twill and plain fabrics is great, and the grey fabrics price is around 10-12 Yuan/M. As for the machine’s operating rate side, the water-jet and air-jet machines’ operating rate is around 80%.

The following graphic shows the chemical fiber index

Analyzed from the chemical fiber side, at present, although the downstream fabrics market has entered the busy season and the oil price continuously stays at a high level; it is very difficult to stop the PTA to drop. The present spot exchange quotation of PTA is 11,500 Yuan/ton and the spot exchange closing price is 11,400 Yuan/ton.

Judged from the polyester yarn side, the overall price keeps steady today in Shengze Market. Now POY 75D/144F is quoted at 17,560 Yuan/ton, POY 75D/72F is 17,350 Yuan/ton, FDY 50D/24F is 19,000 Yuan/ton and low stretch DTY 150D/48F is 16,500 Yuan/ton. The recent purchasing of the weaving factories is very careful. The raw material manufacturers are lack of demand support. The polyester yarn price is not optimistic. The production-marketing situation is uneven among the chemical fiber manufacturers. Together with the weakening upstream raw material, the flat atmosphere will dominate the polyester yarn market.