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The upstream collapsed one by one!
1. Weaving manufacturers bear the brunt
Weaving is already obvious. Manufacturers' inventory has soared to the highest level in recent years. According to the statistics of China Silk Capital, the inventory of grey cloth in Shengze area has risen to around 45 days, at a high level of nearly 4 years. At the same time, most grey cloths have significant price pressures on profits, and price losses are common when goods are thrown away. At present, it has entered the traditional low season, and it is more difficult for manufacturers to take orders. From the perspective of visiting the market, many weaving manufacturers are currently doing inventory. If the market continues to weaken, further reductions in construction will be a high probability event.
2. Then polyester manufacturers
At present, polyester manufacturers have been in a cumulative inventory cycle, and the inventory is at a high level since April. With the possibility of further decline in the start-up rate of downstream weaving manufacturers, it is difficult to make production and sales even, and even continuous polyester yarn promotional offers, There are very few markets with more than 100 production and sales. It can be seen that the low polyester yarn price has been difficult for the weaving manufacturers to pay for. This year is also the year when polyester production capacity is concentrated. Many devices under construction are planned to be launched this year, with more than 2.7 million tons put into production in the first half of the year and more in the second half. When the device continues to be put into production, inventory continues to rise, but profits continue to suffer losses, once the terminal is blocked, the possibility of polyester manufacturers crashing is very high.
3. Then PTA manufacturers
Due to the sluggish downstream polyester market, the current PTA market is also difficult to reverse, prices are outside the low level, and inventories are constantly accumulating. Generally speaking, this period of time in previous years was the most frequent period for PTA maintenance, but this year, it has been postponed more than once, and many sets of devices have been put into production. Recently, another production line of the Hengli 5# 2.5 million ton PTA plant, which was put into operation at the end of June, began trial production, and Zhongtai restarted 1.2 million tons. It is expected that July output will remain at an upper level of 4.3 million tons, an increase of more than 30 from June. 10,000 tons, the supply side of PTA will expand again. At the same time, the profit of PTA is also not ideal. Under the suppression of difficult processing costs, the cash flow has shrunk significantly, and it is even in a dilemma. If the demand cannot keep up in the later stage, it will face high risks.
At present, it seems that weaving mills, polyester, and PTA are in a very saturated state and it is difficult to go to the warehouse. Once a link of the terminal is blocked, the above links will face the risk of collapse. Especially polyester plants and PTA plants, with large production capacity and concentrated production capacity, will face greater risks than downstream links.
Xuzhou Heping Chemical Fiber Co., Ltd. is a professional manufacturer and sales of polypropylene high-strength yarn, polypropylene industrial yarn, polypropylene high-strength yarn, high-strength polypropylene network yarn, split film industrial yarn and other polypropylene products, which are well received by the market.
If you want to know more product information, please contact: Mr. Wang 187 5178 8889 Website: http://www.cdot.net.cn/