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Raw materials jumped 40 percent a month, downstream plants issued a "stop - production proposal"?
From: Dongguan Chengtai Industrial Co.,Ltd Post date: 2018-09-14

CCTV survey: raw materials jumped 4 percent in a month
Source: sina finance and economics, textile fabric platform, textile printing and dyeing station e

According to the previous, yisheng petrochemical company publicity, the company accounts for 40% of domestic PTA market share, is two listed companies jointly invested and founded, respectively, hengyi petrochemical and rongsheng petrochemical, the company name yisheng petrochemical also derived. Rumours that the company had a monopoly caused prices to soar, leading downstream factories to switch to buying raw materials, or shut down.

Yisheng petrochemical was reported by the real name monopoly operating PTA price

Comments on the report vary

High cost, thin profit, afraid of loss production!

At the middle end of the industrial chain, in the raw material prices frequently rise, and how? Reporters came to the concentration of economic and trade enterprises in haining, zhejiang region.
Due to unbearable raw material polyester filament price rise, on August 4, tongxiang city economic and trade commission issued a petition to stop production, called on local economic and trade enterprises to clean up inventories and stop production. Reporters subsequently visited a number of enterprises, although there is no large-scale production, but many enterprises cut production. Xu yingzhong, deputy director of the management committee of haining economic planning industrial park in zhejiang province, said there were more than 200 enterprises related to the price hike of polyester filament yarn, and some enterprises may properly consider stopping production.
Warp knitting enterprises of raw material prices is so sensitive, because usually, warp knitting enterprise's inventory is 7 to 15 days, there are a lot of enterprises to get an order to purchase raw materials, signed orders when polyester filament in a low price, purchasing, the price will rise up, corporate profits is compressed, some even a loss. Mr. Xu said profit margins must have been hit, and that sometimes there could be an inversion of sales and cost.
In a telephone interview, the head of a certain economic editor enterprise in haining, zhejiang province, said that he had just received the order, and then bought raw materials into the market.
The boss of many warp knitting enterprise tells a reporter, at present PTA, dacron filament price rise already let produce blank cloth basically make no money, if raw material price rises further, next blank cloth rises in price also is inevitable choice.

Up three times a month!

In view of the recent continuous surge of textile raw materials (one price per day), weaving enterprises complain a lot. In order to alleviate the current situation, the chamber of commerce of shading cloth enterprises around taihu decided to suspend the production of air jet looms from August 31 to September 6 (7 days).
PTA, polyester filament, cloth, the price of a series of raw materials, directly affect the close life of the terminal consumer goods market!
The reporter visited xu village in haining, zhejiang province. As the country famous home textile goods distribution center, in the shop of many sales curtain in xu village, the reporter sees the price of the curtain at present already appeared small rise.
In xucun, many dealers said that the increase in the price of upstream raw materials has put more pressure on their sales, especially for textiles such as curtains, light boxes, pillowcases, swimsuits and sportswear, which are made of polyester. Raw material is rising in a range, on the dead hold hard, carry to finally can not resist under the circumstances, a little bit more.

Industry said: after September PTA or will "cool"!

By the end of August 28, the price of the main PTA futures contract of 1809 had risen to 9244 yuan/ton, up 55% compared with the price on July 19.
Industry analysis, the rapid rise in prices of chemical raw materials, will not last too long
According to the closing price on February 28, the PTA1901 contract price is 7,924 yuan/ton, which means that the contract for January 2019 is more than 1,000 yuan lower than the price for September 2018, that is, the PTA price may fall after September 2018.
Li yonglei, chief analyst of basic chemical at founder securities, said the PTA price may remain firm until September. Including its inventory is also relatively low, the overall supply and demand side is better, there is no sharp drop in the phenomenon, but as for the rise? Nowadays PTA has reached a relatively high position with little space.


The rising price of raw materials "a wave, a wave from", when "calm" is also unknown. But does the soaring cost of raw materials mean that the rising cost of weaving has become the norm? That is not ruled out at the moment.
For chemical companies, the opening of a more expensive Pandora's box may mean that they have run out of options in the face of rising raw material prices. In this case, consider how to eliminate negative market reactions or be more realistic.