The "butterfly effect" of cost: the dilemma of chemical fiber under raw material fluctuations The arrival of the raw material maintenance season has made the cost of the downstream chemical fiber industry face uncertainty. For some companies that rely on polyester raw materials, if the supply of raw materials decreases, the procurement cost may increase. For example, when the prices of PTA and MEG rise, the production costs of downstream staple fibers, chips and other products will rise. According to the transaction summary of Zhongpu Column on March 3, the average price of PTA in the domestic market (03/01-03/28): Zhongpu average price 5002, reference average price 5005. And the average price of MEG in the domestic market (03/03-03/28): reference average price 4670. These price fluctuations directly affect the production costs of downstream chemical fiber companies. The "chain reaction" of production: the battle of chemical fiber companies to respond The instability of raw material supply will also affect the production plans of downstream chemical fiber companies. If the raw material supply is insufficient, companies may face the risk of production interruption. For example, some staple fiber factories may reduce production due to raw material shortages. According to the transaction summary of Zhongpu Column on March 3, the production and sales of short fiber factories on that day were sluggish, with an average production and sales of about 79%. This shows that the raw material maintenance season has had a certain impact on the production activities of downstream chemical fiber enterprises.
Inventory problems of chemical fiber enterprises The inventory management of the downstream chemical fiber industry is also affected by the raw material maintenance season. Due to the uncertainty of raw material supply, enterprises may increase inventory to cope with possible supply shortages. However, this will also increase the inventory costs of enterprises. According to Everbright Futures, the raw material inventory of polyester factories continues to rise, with a fast accumulation rate and an absolute amount close to the highest level in the same period of five years. This shows that downstream chemical fiber enterprises are facing great pressure in inventory management. The "watershed" of competition is in the raw material maintenance season, and the market competitiveness of downstream chemical fiber enterprises may be affected. Those enterprises that can better cope with fluctuations in raw material supply will have an advantage in market competition. For example, some enterprises may reduce costs and improve production efficiency by optimizing production processes and finding alternative raw materials. According to the information , the company helps polyester industry chain enterprises better cope with market fluctuations and improve market competitiveness by providing transaction matching services. In general, the polyester chain maintenance season has many impacts on the downstream chemical fiber industry. Enterprises should actively respond and take effective measures to reduce the impact and improve their market competitiveness.
