Large Scale Promotion Of Polyester Filament: Temptation From Low Price Range

Sales promotion is a common means of doing business, businesses through price reduction to attract consumers to buy their own goods. In the past, when the market is not good, polyester inventory is too high, polyester manufacturers will also through a certain means of promotion to drive goods, the effect is good in most cases. In recent years, polyester inventory continued to rise. The mainstream factories of polyester filament front spinning have opened the preferential promotion mode again.

On the 25th, the average production and sales of polyester filament in polyester factories reached 80% - 120%, and the production and sales of some better factories could reach 300%. It can be said that it was the best production and sales day since mid August, but the sales promotion efforts of some manufacturers on that day were also quite amazing.

Large scale promotion of polyester filament: temptation from low price range

Under the pressure of high inventory, promotion seems to have become a conventional means in the sales process of polyester factory. Especially in the context of this year's price falling into the lowest range in history.

This year's overseas public health events were superimposed on the "Three Kingdoms killing" of oil prices. Polyester filament started a downward mode. At the end of the first quarter, the transaction focus of the poy150d / 48F market was 4800 yuan / ton, and the low transaction volume was 4500-4600 yuan / ton, falling to the historical low. Since the second quarter, although the market has been slow to rise, but has not been a breakthrough, so when prices fall into a low range again, the market's bottom mentality has become very keen.

It is understood that after the promotion, polyester prices have returned to the low range, which has indeed brought about large production and sales volume, and the downstream and traders can take advantage of low prices and make up positions appropriately. "The raw materials in March and April are at the lowest level. Now they are up and down. It seems that the raw materials will fall back to the previous low level. Therefore, we still carry out the mode of order production and no order production inventory. The factory has opened about 60% looms." A production of polyester taff, Chunya spinning textile factory director said, "chemical fiber cloth is relatively easy to store, put a long time point will not be bad."

Textile enterprises "bite the teeth" without stopping production

However, after going to the warehouse, the polyester factory will recover the preferential situation in a short period of time, but the phenomenon of continuous hot sale is difficult to last. Capital has become the strongest "bullet" in the current environment.

In August, the polarization of the market is becoming more and more obvious. Just as recently, some people say that garment factories have been started, and some of them are doing well. Others say that they have been in the factory for less than a week and there is no business, so they may have to take half a month off.

The global garment industry is suffering from impact. Facing the current market environment, many textile enterprises are "biting their teeth through the difficulties". A boss of a textile factory with 60 looms told Xiaobian that if the factory stops production for one day, it will lose 2000-3000 yuan. In this way, it's equal to losing 1 hair per meter of grey cloth. So if I lose 5 points on the order now, I'll take it, so it's better than stopping production!

According to the monitoring data, at present, the profit margin of conventional chemical fiber products in the market is extremely low. The larger the social inventory, the lower the profit margin. For example, the most conventional 190T polyester taff is quoted at 0.80 yuan / m in the market, and its profit has been on the edge of loss. With the recent recovery of raw material prices, the gray cloth price is still hovering at the bottom, and the profit space is further shrinking. But even if the profit is not high, many manufacturers of ditaf just reduce the load and stabilize the production, and have not had a full holiday.

At the same time, for the current textile market, most textile owners do not have particularly good expectations for the future, but some people still adhere to production, one of the very important factors is that the price of raw materials is at a historical low. "It's really cheap to buy raw materials this year. In previous years, we had to prepare 300000 acceptance to buy raw materials every time. Now it's less than 200000, which reduces some production pressure." Said a textile factory owner. "Now the price of raw materials is low, and it is estimated that it will not fall anywhere again, so even if there is no order, we will keep our production in stock, and when the market is good next year, we will not lose a lot." Another owner of a textile mill with 200 looms said. However, after the preferential policy was contracted, the market price was raised, and the purchasing price of the lowest price was also fleeting.

Short term recovery is difficult to boost market confidence, and the improvement of overseas orders in the future is still the focus

Under the influence of public health events in 2020, many foreign trade people, after experiencing the dark moment of "order shortage" in May and June, finally feel a trace of warmth in the traditional off-season of foreign trade in July and August. In August, the fabric orders increased in winter, and the textile market ushered in a periodic warming up. As of August 24, the average polyester operating load in August was 87.71%, and the loom operating load was 64% Do not increase by 0.4 or 8.5 percentage points.

Judging from the textile market, it is true that the foreign trade textile market has recovered gratifying, but the short-term recovery can not boost the confidence of the textile market. 64% of the loom operating load is still at the low point in the same period in recent years, and the gray cloth inventory in Shengze area is still at a historical high of about 45 days.

Affected by public health events, textile enterprises at the end of the industrial chain have higher finished product inventory and longer sales collection cycle, which directly leads to greater financial pressure of textile enterprises. At present, the main reason is that the number of newly diagnosed cases in foreign countries maintains the peak state. It is speculated that the public health events in September and December have great resistance to the export of non medical textiles and clothing, which leads to the difficulty in de stocking of grey cloth, which indirectly negatively affects the production and sales of polyester products and inhibits the de stocking. Under the background of the continuation of public health events, the demand side's bad luck continues to affect the market from bottom to top.

Therefore, the improvement of overseas orders in the future will have an impact on polyester. Whether it can hold up the long dormant market or not will be the focus of the industry.