The Changing Of Petro Oil Affect The Polyester Price
On the early morning of March 24, Beijing time, the international oil price continued to dip after a low start, and the price of US oil fell below $60 / barrel once again. The benchmark Nymex crude contract was down 6.76 percent at $57.40 a barrel as of 6 a.m. Thursday. ICE, the main oil distribution contract, dropped 6.35 percent to $60.42 a barrel.
What is driving oil prices down again? Market participants generally believe that Europe and the epidemic rebound related.
Because the production of astrazeneca in the process of vaccination vaccine appeared significant side effects, European nations has suspended the vaccination, at the same time, the will be coronavirus under the influence of variation, signs of renewed outbreak again in some countries, the original hope that the outbreak recovery boosted crude oil demand is expected to produce obvious impact, parts of Europe to blockade action is added to the concerns of the crude oil demand is weak.
On the other hand, pressure comes from the United States. Although the chairman of the Federal Reserve said this week that he would not start to raise interest rates until 2023, US bond yields continue to rise in the face of rising inflation expectations, which has had a significant negative impact on global financial assets, and oil prices have also been greatly impacted.
In addition, tensions between the U.S. and Russia flareed this week, with investors worried that the U.S. could impose new sanctions on Russia and prompt the country to boost crude exports to hurt the U.S. shale oil industry, especially as oil prices remain relatively high and the expectation of increased supply is a key factor influencing oil prices.
In fact, before a new round of crude oil slump, PTA, ethylene glycol after a sharp drop has been the actual performance of the stability, but the gate fire, the fish will inevitably suffer, the shaky market will be oil prices again into the vortex of the fall.
Crude oil price slump not only led to the fall of PTA, ethylene glycol and other raw material products, but also the price of polyester fiber products collapsed step by step due to the collapse of costs. For example, on 24th, some polyester factories cut the price of their products again after the previous 200-400 price reduction. According to common sense, the drop in raw material prices should be conducive to the purchase of raw materials by downstream polyester customers, but enterprises have expressed "dare not buy". According to industry analysis, enterprises generally buy up rather than down when buying raw materials. When oil prices fall, they will be more cautious about purchasing raw materials. In this case, polyester factory inventory continues to rise and accumulate, and downstream demand is sluggish and insufficient. If the defense line of cost also falls, polyester polyester products may continue to find new low support points.
For the polyester market, the decisive factor is still supply and demand. From the point of view of demand, with the shock of raw material prices, the downstream orders are cautious, and the market is short of large orders. Therefore, the downstream textile enterprises are less willing to replenish high-priced raw materials. In addition, the stock of grey cloth finished products has increased, and the textile enterprises have a relatively cautious purchasing mentality.
On the whole, the supply of loose situation continues, coupled with the demand began to weaken the expectation, and the trade relationship is uncertain, the recent market is expected to weaken, the export market is relatively active, the brand inquiry and lofting has increased significantly than before, part of the proofing feedback. However, due to the continuous fluctuation of raw material prices in the domestic market, it may have a great impact on the profit margin of later orders.
source: Hua Xian Tou Tiao