Fibres cut prices by nearly 20% in half a year

Recently, the price of New York crude oil fell below the threshold of US$80/barrel, and related industries “someone is happy and some worry”. The prices of chemical fiber industrial chains that are closely related to these products have continued to fall. Although the transportation industry seems to have benefited significantly, the decline in domestic refined oil prices is limited. This has caused enterprises and self-employed individuals, including logistics and transportation, to feel that they are merely “tired”.

The peak season for the chemical fiber industry is “since the beginning of April. It is the peak season for the textile industry to produce and ship. Based on this, we can judge the market and price trend in the second half of the year. However, this year it is the peak season.” Fujian Textile and Apparel Export Base Chamber of Commerce Secretary-General Chen believes that from now until the end of the year, chemical fiber prices and low market demand will continue to be low for a long time.

The lack of demand for raw materials from apparel companies and the drop in oil prices continued to drag on the polyester industry chain. Polyester prices generally fell by about 20%, individual products had fallen by nearly 40%, and PX, PET chips, and polyester filaments in the industrial chain had a large drop. Secretary-General Chen introduced: “For example, a polyester was 15,700 yuan/ton in early January, and prices have fallen by 2,000 yuan in just six months, a drop of 12.7%.”

At the same time, the drop in oil prices brought about a drop in the prices of chemical fiber inventories, which also caused textile companies' concerns. "A fabric can be sold for 11 yuan and 1 meter last year. Now it can only sell about 8 yuan and 1 meter." Looking at the backlog of products in the warehouse last year, Shi Shiyi, head of the textile company, is not optimistic about digesting this burden.

It is understood that the gross profit margin of the textile industry will generally not exceed 5%, and most of them will increase profits. Compared with previous years, the demand situation of apparel companies this year is even more sluggish. Confronted with the trend of lower oil prices for several months, maintaining the original price may now lose market share. “A part of these stocks were bought when the price was higher last year and have now fallen below the buying price if external demand is still weak. The company will have to put up with the pain."

The response of the logistics industry is blunt. “From the perspective of the international crude oil price trend, the future oil price may also be lowered. It is also a good thing for companies. However, this decline is still not enough to make up for the pressure caused by low freight rates on the survival of enterprises.” Well-known in the province The person in charge of the Quanzhou branch of the logistics company introduced that in response to rising oil prices, the company and some customers signed a linkage mechanism between oil prices and freight rates. Although the price of crude oil has fallen recently, the refined oil price may decline further in the future, but due to the decline Limited, the company can't benefit from price cuts.

Compared with the limited effect of improving the cost of logistics companies, some individual transporters frankly stated that they did not feel that they had fallen. “From the drop in crude oil prices to the reduction in domestic oil prices, there will be a period of time when future oil prices will be difficult to say.” Some individual transport operators said that the biggest problem now is the excess capacity in the transport market, although the price of oil was lowered some time ago, even In the future, the price of oil may continue to fall. It can indeed save several thousand yuan of oil money each year. However, it is their biggest headache to find that there is no excess capacity.