Market Back To Normal, the Indexes Slightly Rise

Analyzed from the data inspection given by 350 relative companies, Commerce Department China-Shengze Silk and Chemical Fiber Index continue to show rising tendency this week. Among these, the overall chemical fiber products index closed at 98.38, increased 0.03 compared with last weekend; chemical fabrics price index closed at 97.34, increased 0.41 compared with last weekend; the chemical fiber index increased 0.02 compared with last weekend and closed at 101.46; while the price index of the cocoon silk series products still keep falling, which closed at 101.08 by the end and fell 0.06 compared with last week.

(The following graphic shows the recent tendency of the chemical fiber products index)

See from the above graphic, the index shows a constant increasing tendency this week. This is mainly caused by the overall market situation, which has been back to normal by now. Previously, the operating rate of machines was low because of the labor shortage, which made the manufacturers successionally raise the salary to attract employees and the cost was accordingly pulled up. Besides, since the end of last year, the raw material price has been continuously increasing. Influenced by these two factors, the cost of the weaving factories dramatically grew up, so the fabrics price generally increased 0.3-0.5 Yuan/M after the Spring Festival in the market. Correspondingly, a lot of orders were so hard to operate that the merchants had to renegotiate with customers. As the customer needed time to accept new prices, the fabrics selling and the trade volume on market finally began to rise after two weeks’ adjustment. The traders’ buying attitude became active because of the short supply of fabrics on market. The reasons are, most weaving factories are lack of workers and their fabrics stock is low. Judge from the chemical fiber material index which slightly increased this week, the main factors are that the downstream weaving factories had low operating rate of machines and their demand for the material was relatively low, as well as that they had already stocked up before the Spring Festival. Besides, the upstream material price was always consolidating and the straddling attitude of the downstream weaving factories was growing. Therefore, there is no big change for the material price this week. While the price index of the cocoon-silk series products continuously fell back. Because of the fast increase of the cost and the relevant high level of the terminal products prices, the sales were greatly influenced. Under the high price and lacking amount situation, the index can only keep dropping.

(The following graphic shows the recent tendency of chemical fabrics price index)

The market operation is back to normal, as well as the production situation of the weaving factories. A lot of factories and traders are receiving orders as usual and the circumstances are becoming better. Therefore, the fabrics price in Shengze Market slightly increased.

Judge from the tendency of the products in fabrics market respectively. The overall fabrics sales are increasing. Due to the successionally shipping amount of previous orders, this week’s market is far busier than last week. Analyze from the hot degree of the products. The high-density dull Taffeta continues to have rise in sales. Especially the 290T and 310T dull taffeta, which have strong density, good breathability and hand-feeling of nylon fabrics. With these selling points and of course the most important, economical prices, these fabrics are widely used as spring-summer apparel fabrics and high-class linings. Other products like Nylon, Nylon/Poly fabrics, and Wrinkled Satin also sell well. And the selling situation of the Poly Satin is good too. As for the operating rate of the machines, the water-jet and air-jet machines’ is above 80%.

(The following graphic shows the recent tendency of the chemical fiber price index)

The chemical fiber price index slightly increased this week. As a result of the continuous high level of the international oil price, some manufacturers are worried about the polyester cost. Besides, due to the rigid demand of some weaving factories, the overall production-marketing of the raw material market is low, which is mainly around 70-90%, but is obviously better than last week.

As for the detailed price situation, the Asian PX price has increased to 1,650 dollars FOB Korea this week, and the European PX price also increased to 1,795 dollars FOB Rotterdam. As the contract 1105, the main force PTA futures in ZCE increased to 11,842 and its buy offering in the East China increased to 11,750 Yuan/ton, the mainstream negotiation on this is few. The sell offering of bonded Taiwan goods is around 1,520 dollars/ton and the bonded Korean goods are quoted at 1,500 dollars/ton. In the East China-Home Trade Market, the mainstream offering of MEG is around 9,950 Yuan/ton. The spot exchange price including 3-month acceptance and delivery of semi-chips in Jiangsu-Zhejiang Market is 13,700 Yuan/ton and that including 3-month short trip delivery of light chips is 13,600 Yuan/ton.

(The following graphic shows the recent tendency of cocoon-silk products price index)

    Although the upstream raw material price is adjusting at a high level this week, the PFY price still partially increased, which is pulled by some manufacturers in order to improve the sales. By March.3, the acceptance price of FDY 50D/48F in Shengze Market is 19,000 Yuan/ton; it of DTY 75D/72F is 21,400 Yuan/ton and it of POY 75D/72F is 17,800 Yuan/ton. Moreover, dealers generally think highly of the afternoon market. However, the silk industry chain is comparatively long and it is slow to conduct the price. Therefore, if the silk products rise too fast in prices, the demand will be surely suppressed. As one third of the silk manufactures in Shengze are running with low profit, and even part of them have stopped production. Hence, although the prices are uptrend, when there are no sales volume on market, the index have no other choice but fall.