babawildslots| Tongkun Co., Ltd. and Xinfeng cut production by 10%: the polyester filament market is now raising prices to protect profits
Newsletter summary
Tongkun, Xinfengming, Dongfang Shenghong and other large polyester manufacturers in Jiangsu and Zhejiang provinces have reduced their output by about 10% to cope with the decline in demand in the off-season.BabawildslotsRaising prices to ensure profits, and the effect of inventory removal remains to be seen.
Text of news flash
In the face of the off-season pressure of downstream demand, Jiangsu and Zhejiang polyester filament manufacturers negotiated to reduce production in the middle of May in order to reduce the inventory burden and stabilize the market price. Recently, these manufacturers have announced one after anotherBabawildslotsWe have the news of the price increase of the product, although the range is different. Well-known enterprises participating in the production reduction include Tongkun (601233)Babawildslots.sh), Xin Fengming (603225Babawildslots.SH), Oriental Sheng Hong (000301.SZ), the estimated reduction in production is about 10%, and the time to restart production is not yet clear. According to market analysis, some long-term units of Rongsheng Petrochemical (002493.SZ) and Hengyi Petrochemical (000703.SZ) have been suspended due to revamping, which has reduced the production capacity of polyester filament supplied by the market by about 1.6 million tons. After the implementation of the production reduction measures, market analysts hold a wait-and-see attitude towards the effect of the production reduction. They believe that the implementation of production cuts in several large polyester factories may not be in place because filament prices and profits are still falling, suggesting that production cuts may not be enough. The person in charge of Xinfengming said that according to the specific situation, the company has reduced production by about 5% by 10%, and pointed out that the current inventory is maintained at about 27 days. In terms of price, the company has adopted a restorative price increase strategy to cancel the preferential treatment to manufacturers. Tongkun shares pointed out that the company has implemented a production reduction of about 10% as planned and adjusted according to the inventory situation of the production plant. The company expects to increase the price of products through production reduction measures in order to stabilize the efficiency of the enterprise. According to industry insiders, Hengyi has raised the price on the basis of the original price, and the price of POY and FDY products has risen by 600 yuan / ton. An industry insider stressed that the purpose of reducing production is to reduce inventory, while raising prices is to protect profits. The fluctuation of crude oil price will also affect the price change of the whole industry chain. He pointed out that after three large companies with a higher market share raise their prices, small companies will follow suit. In terms of profit per ton, polyester varieties such as POY have been losing money in the past two months. Although the recent losses have rebounded, the loss range remains at about 200 yuan per ton. The person in charge of Tongkun mentioned that it is not easy to keep summer products in the open air for a long time, and the company hopes to reduce inventory to normal levels by the end of June. He points out that to return to normal inventory, the production and sales rate needs to reach 120% in the next two months. According to Baichuan Information, as of May 9, POY inventory is 28-32 days, FDY inventory is 21-26 days, and DTY inventory is 25-30 days. In addition, with the implementation of plant maintenance and production reduction measures in large factories, the price of polyester products has not been significantly improved. Downstream manufacturers and traders believe that the current price has reached the bottom, so they began to increase hoarding purchases, resulting in a significant increase in downstream purchases. As of May 23, the operating rate of polyester filament is 83.13%, of which the operating rate of melt direct spinning is close to 86%. On May 18-20, the downstream buyers took advantage of the low price and the purchase volume increased significantly. However, the subsequent changes in the production and sales rate show that the market acceptance of price increases is not high. From January to April this year, the export performance of polyester filament was not satisfactory, losing the growth momentum of last year. Customs data show that from January to April 2024, polyester filament exports fell by 7.58% compared with the same period last year. To sum up, the production reduction and price increase measures of large polyester factories in Jiangsu and Zhejiang show their strategy of actively regulating the balance of market supply and demand in order to maintain price stability and enterprise profits during the off-season of market demand. However, the market response to price increases and the decline in export demand will have an impact on the ultimate effectiveness of these measures.
Tags:
Prev: superlottojackpot| Blue Sea Huateng: Electric aircraft motor controller project has received the first government funding
Next: fortuneclockcasino50freespins| Xiaomi Q1 performance exceeded expectations: revenue increased by 27% and automobile business became a new engine of valuation