Polyester two joint production cuts, still no match for the downstream cliff-type boot.

Release time:

2022-08-22

This year, due to insufficient textile and clothing consumption, hot weather and power rationing, the operating rate of polyester terminal looms has remained at a low level in the same period in the past 10 years. Polyester factories jointly reduced production and load reduction in May and July this year to cope with weak consumer demand. What is the effect of polyester factory trying to achieve de-stocking by reducing the operating rate? The effect is not very obvious, the filament inventory is increasing instead of decreasing, which is only a drop in the bucket compared to the tired inventory in August.

In mid-August, the domestic polyester start-up load was only maintained at 77.8, but even if the start-up was lower than in previous years, it was still inferior to the downstream competition, and the start-up of weaving was even worse. Since the beginning of 2022, the start-up rate of downstream looms has shown a downward trend, with the highest decline being in air jet loom enterprises, with a decline of 35.50. The order differentiation of air jet loom enterprises returning in the beginning of the year is obvious, most enterprises received orders at the end of the year and continued to produce after the year, so the overall industry start-up rate was supported. Although the number of large orders in some enterprises was relatively low, some enterprises issued small orders and scattered orders. Therefore, the industry's production busyness was acceptable. However, with the gradual delivery of market orders, the superimposed terminal market was weak and the start-up rate declined rapidly. Water spray, circular machines and knitting machines are also facing serious orders. Indeed, the spread of the epidemic has led to a decline in purchasing strength. Economic recovery needs time to buffer. Most residents choose to purchase daily necessities and reduce corresponding expenses in textiles and clothing. The startup rate of most downstream weaving enterprises is between 40% and 60%, with a decrease of 10% and 34% compared with previous years.

With the power rationing, the weaving start-up load fell again to 47.91 per cent. Among them, the start-up rate of water jet looms in Wujiang area is 55.05. The start-up rate of water jet in Changxing area is 47.25, while the start-up rate of round machines in Xiaoshao area is only 38.99, the loom load of warp knitting factories in Haining area is 46.15, and the start-up load of warp knitting factories in Changshu area is 40.23.

At present, as it is still in the off-season of textile and clothing consumption, polyester factories mostly maintain the state of production reduction, some small polyester plant start-up changes have limited impact, polyester overall operating rate is difficult to have a significant increase. With the decline in the opening rate of Xiaoshao, Ningbo and other regions, the weakening of demand led to the weakening of polyester filament market prices.

Operation Analysis of China's Industrial Textile Industry in the First Half of 2022

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